Anyone else in the South East worried about Andy Burnham bringing in a land tax?

[Beachbooks]

With it looking likely that Andy Burnhan will be the next PM, I was interested to see if anyone else in London / the south east were worried about potential tax raises specifically around the land tax rather than stamp duty ?

A lot of my friends who live locally are worrying that he will make the land tax for the South East so high in proportion to other areas of the UK that it will be financially very difficult to afford but then also extremely difficult to sell!!

BTW we have very standard house and garden but we live in an expensive area

Another potential benefit as he sees it is forcing people to downsize and as house prices fall families can buy up the big houses, who knows how his mind works?

we pay a similar amount £4000+ with identical issues, the real issue is the inequality of London council tax. We paid around £600 when we lived in the equivalent house in London. Don’t think all of the SE has it good 😳

I suspect his mind works looking for the greater Good of the masses as opposed to the benefit of the few. Thank goodness, hopefully.

I would say ignoring the homes 1/39 is very questionable

I don't know if you are being ironic.

The tax may reduce purchase prices, but it will also increase the cost of owning a home. It's also likely to push up prices in lower-tax areas as buyers gravitate towards homes with lower ongoing costs - even families.

That tax is only likely to move in one direction. Ultimately, people will just be swapping part of their mortgage for an ever-increasing annual tax bill, which is likely to end up exceeding what they would otherwise have paid in Council Tax.

Forcing people to downsize downsizers to compete with first and second time buyers for the limited housing stock available? That'll be good for prices.

So hefty annual taxes make larger homes more attractive to families?
That's an interesting theory. I mean we definitely saw that with VAT on private school fees. That up-lift definitely made those schools places more attractive.

He knows that interest rates are coming for the property bubble, people will cough up a yearly tax if they can secure cheap property, if taxes go up they will just get a lodger or AirBnB a spare room.

Families are not going to buy flats, whatever tax nonsense he comes up with, flats are a loss maker now, no one wants them, the idea that "prices are going to be pushed up" because of this or that is fantasy, people no longer have the debt available to push up prices.

How is this fairer, surely it disproportionately taxes the younger generation compared to older one - probably the same people also facing childcare fees, student loan repayments, higher mortgage costs ?

His mind works in the same way as any other Labour - ideology with no understanding or economic reality and behaviors. He gave an interview about bond markets (I bet with no idea what they are, probably thinking they are some meanies who try to cut his magic money trees) and gilts jumped to the level making Truss pale.

Yes, that was the "bond markets don"t matter" interview? He is a walking crisis waiting to happen, I am loading the money market funds and buying popcorn.

It isn't rocket science.

From the various bits of housing data and research I've seen, three-bedroom homes are already among the most sought-after properties for first-time buyers, second-time buyers and young families. That has hardly changed since I bought my first home many years ago. Although many first-time buyers end up buying a two-bedroom home because that's all they can afford.

Downsizers most commonly move into two-bedroom homes, with three-bedroom homes the next most common. They are often in a different position from many first and second time buyers. By selling their existing home, they can often release enough equity, to buy their next home outright. That can give them more choice or wiggle room on price.

In that situation why would many people who have spent decades planning for retirement voluntarily choose a leasehold flat with uncertain future service charges, management fees and less space if a two or three bedroom freehold house, or ideally a bungalow, were available within their budget?

First time buyers, second time buyers, young families and downsizers all looking at the same houses is not to going to improve affordability, especially when there still aren't enough of those houses.

Yes, "we shouldn't be in hock to the bond markets".

Something in me actually want this crash to happen rather than death by thousand cuts