To think that the new tax on £2m will eventually be harmful to ordinary folk?

[IwishIcouldski]

I'm concerned that the new tax on properties over £2 million will push more buyers toward homes below that threshold. Increased demand at lower price points could intensify competition at £1.5 million, £1 million, £500,000, £300,000, and so on, as buyers adjust their expectations downward in response to pressure higher up the market but still below the £2 million mark.

It also raises the question of who will actually buy the £2 million-plus homes. I can imagine many sellers pricing their properties just under £2 million to attract buyers, which could drive prices down at each prove level across the market. Meanwhile, some of the remaining £2 million homes may end up being purchased by the very wealthy or by landlords who convert them into multiple flats. There may need to be big drops in prices because when you buy, you would not want to be dragged into the £2m mark after a couple of years because of inflation.

I feel it will eventually harm ordinary people over time but the wealthy will be able to weather the storm.

If a house increases in value due to building works/ renovations etc., the higher council tax value is triggered when it is sold at the higher value, so therefore it’s the new owners that cop the increase.

Unless council procedures have changed that’s what happened to us when we bought a house renovated by the previous owners.

So thankfully logically your point doesn’t apply.

Exactly this!

That was in reply to the poster who said it would affect builders renovating houses and increasing the value of homes.

If you're in a home now that was ok before but now not right for you because...
... you're disabled and can't handle stairs / keep it heated / need a downstairs walk in shower (etc.) / too far from social care
... you're cash poor and can't afford the upkeep / taxes / mortgage
... it's too small for your family
... you have health problems, need to be closer to a hospital
... it's too far from work and the commute is impossible
... other reasons I haven't thought of

then you move. People have to move house sometimes. Just ... accept this. Stop treating moving house like a tragedy.

btw, I have a 73yo aunt moving home because she can't afford the upkeep. She grew up in the house she's leaving. She's trying a "Poor me" narrative, but regardless, it's not the right home for her any more.

Internet says that about 30% of London's population lives in social housing: that's a big chunk of poorer people who won't be affected by mansion taxes. Median London household income is still about £60k/annum; lots of Londoners are renting privately on that kind of HH income.

They haven't "made a staggering untaxed profit of £1,900,000". They don't actually make a profit until the house is sold. Until then it's just their home that they live in.

London not paying the same Council Tax as the rest of Britain is a different matter. The Councils can afford to charge low residential council tax because they get so much business council tax. If the Labour Party want to increase equality they should be doing more to spread employment and jobs outside of the S.E.

No it's a revaluation at current prices.

Partly because a band G in London and a band G in the North West could now be vastly different in prices because since they did the valuations for council tax bands in 1991 there's been a massive difference in house prices inflation across different parts of the country. This is one of the reasons that people from the South East have been able to buy up large numbers of houses in the north for rentals because they've benefitted from much larger increases in equity value than people in homes in the north.

They have said they are going to do revaluations.

All this business of people throughout the thread going 'well a £1million flat now will soon be a £2million haven't actually read how they are going to do it nor understood it's going to be like current tax bands - just with a revaluation process first so you effectively get a lower mansion band and a higher mansion band and this won't change until they decide to lower the banding to include houses at a lower valuation level. They are not going to do multiple revaluations every other year. They will just change who is included in the mansion band based on the 2026 revaluation.

And how do they access that theoretical profit? Its not real until the house is sold and it’s not accessible.

I agree.

Some people thought the removal of child benefit for the ‘rich’ was a great policy when it was introduced. 10 years later the threshold hadn’t moved.

Ridiculous. You completely ignore all the many many inequalities in our society that exist because rich people hoard all the wealth which make it almost impossible for the vast majority to aspire to much else than working a dead end low paid job to pay proportionately more in tax for millionaires to get richer.

A working class child in a shitty mainstream school can aspire all they want. Statistically speaking, they're very very very unlikely to become millionaires. You speak as if aspiration is the only barrier to success.

Thats me. I hadn't realised that. Its a bit clearer now.

So the thrust of this thread is trying to be that it's bad for the poor to tax the rich.

Or so my trusty AI analysis tool says.

Remortgage.

Hopefully any Mansion Tax will be deducted from any Capital Gains tax owed when the property sells eventually.
Otherwise it is unfair.

Soon there'll just be working people paying tons of cash for others and then that cash cow will run out. Wonder how Reeves will then fund other peoples life choices? I predict a tax on the air we breath. We'll all be given canisters strapped to our backs. You read it here first....

When injustice and unfairness are being discussed why do working class ‘ordinary’ people suddenly become ‘folk’?

There are many below average mainstream schools, not all attended by deprived family children. After all, its mainly the wealthy who can afford to send their children to private schools so the majority go to mainstream. You shouldn't give your children a mindset that they aren't going.to amount anything just because theyre at mainstream below average schools.

Yeah, yeah that will happen. 🙄

There are huge inequalities in this country that have only got worse in recent years.
The balance needs redressing.

Yup.

I can just picture the line outside the social housing office.

Then filling in the form. Do you have more than 16k savings (or whatever it is).

Isn't capital gains tax only payable if you are selling a house that isn't your actual residence, not if you are moving to another house?

That’s nonsense, the majority have bought their houses in the last 10 years with huge mortgages and the values haven’t gone up at all.

Yes, it's going to be terrible isn't it?

As I said earlier, someone needs to crowd fund or maybe set up a charity?

That’s wrong the thrust of the thread is that people living on benefits cannot stand people who are bright, driven and hard working getting rich!

A working class child in a shitty mainstream school can aspire all they want. Statistically speaking, they're very very very unlikely to become millionaires.
I know people in trades who are doing very nicely thank you. A lot of youngsters are realising that what schools deem to be success (academia, with its attendant debt) is not always the best path.

I don't know if anyone else has this but I feel it's quite appropriate that the ad I am seeing on this thread is for Action for Children & highlights the plight of vulnerable children...

But it's the poor old rich people in their £2 m houses we need to worry about, right?

Got worse due to the system offering to look after people who cant be arsed to look after themselves. Theres millions currently receiving benefits, many just because they can. There will come a time when more people are taking than giving. What then? Theres only so much which can be squeezed from the rich. The only thing currently not chargeable is the air we breath...