To think an annual property tax is incredibly unfair?

[Itchthescratch]

I come from an area with low house prices. It is great! My friends can generally afford houses even with lower salaries as the earnings:house prices ratio is better. Rents are also lower so they have proportionately more disposable income.

I have moved to a more expensive area where house prices are higher and people have really had to push themselves to buy a property. Salaries are higher but not high enough to make up the difference. They have had to pay more stamp duty , pay more interest and have less disposable income each month.

I am really struggling to understand why my friends in the South should also automatically be paying more property tax under the new proposals being suggested by Burnham supporters? What is the justification? They would love to buy a large detached house for £300k like my friends from home but this isn't possible. It feels like they are being double penalised.

Just to add house prices haven't risen in real terms in the area in live in now for 20 years so the value of my friend's houses is simply money they have paid in.

You can do a whole host of things to update council tax bands without implementing the proposed annual property tax.

Of course people want others to pay more. That’s Labour. Every meeting is who can we tax for benefits - Pat McFadden. It’s the same motivator.

The poll on this thread disagrees with you. If Burnham wanted to prove this would delight people then he should hold an election. In a democracy, this is the only acceptable to implement such a massive policy that could have such major consequences for a large chunk of the population. Do you disagree?

I am starting to believe that democracy is completely broken. The Labour manifesto absolutely doesn't mention an annual property tax or anything of this nature. Reeves promised before being elected that there would be 'no additional tax rises' before the election and the manifesto explicitly stated “Labour will not increase taxes on working people” on page 21.

Now we find ourselves with a government that has risen additional taxes and is looking to increase property taxes that disproportionately imlacf working people. As always those who don't work such as the majority of people in SH stand to gain most from this policy whilst owner occupiers where the majority work will stand to lose.

I honestly think this will cost Labour their London stronghold.

The whole thing will be a bodge job when they implement it, then another 3 years of this crap until the next election.

Whst happened to Labour’s manifesto pledge not to increase taxes on which they were democratically elected? And Andy Burnham saying the South will no longer have to subsidise the North? What utter nonsense.

Stagflation, no growth, councils burning through our money without any transparency or accountability it seems. I wouldn’t trust them to run a bath. Sorry to be so negative but I’m so disillusioned with the current state of affairs and the way this is heading.

Fortunately aside from a few on mn the electorate do kick back when this stuff is lied about. Starmer is gone and Burnham needs to avoid doing the same otherwise he’ll get kicked out too.

What are the council tax figures now? I've read, no idea if it's true, that in some parts of London council tax is very low. Is that fair? I thought the poll tax was fair but obviously I was in a minority.

It won't increase for everyone. From the figures quoted id be £1k a year better off.

Calculator isn't using up to date council tax rates. Have you adjusted for that.

What about in three years time when the paper valuation of your flat has increased much faster than your salary? Will the figure still be cheaper?

The Fairer Share model is based on annual revaluations. So your tax bill each year is based on what it would cost to buy your flat if you were buying it that year.

I've used the up-to-date figures for my council tax, when I said figures quoted I was referring to the 0.48 or whatever it was. I don't live in a flat. I don't have a salary as I'm retired. My council tax bill goes up every year now but £1k lower certainly gives some wriggle room.

Stamp duty also means less choice in retirement. Id like to move from our four bed double garage house to something smaller. The stamp duty is one of the reasons DH won't.

Stamp duty could go, you could move and not need the extra £ off property tax. You’ll have the sale funds.

If £6k is 0.48% of their property value, that means they live in a property worth around £1.25m? My heart bleeds 😂

We will have the sale funds but I want to move nearer to my children, more expensive area so smaller house will cost about the same we'd get for this house so we need funds for estate agent, solicitor, moving costs. Stamp duty on top really makes it very difficult maybe impossible.

Yes. I'd be paying about the same. Tbh, I can't remember a time when people did bleat. It used to be The Rates, then the Poll Tax & now it's Council Tax.

It's because of the Labour gov we've been looking at getting visas to leave this country and work in the gulf.

They are living in an equivalent house to my northern friends though. A detached house in a nice area. The difference is that they are saddled with an extremely high mortgage. They don't actually own any more of their house equity wise than my northern friends.

So why should two people with the same amount of equity in their house pay such different amounts for their local services? Explain to me the rationale. It's hardly a wealth tax is it when one isn't wealthier than the other.

💯 🙌🏼 I think it’s terrible, potentially expecting people to stump up 6k a year on tax. This gov just pretending people have £ the affordability to meet more and more demands. 🤦🏼‍♀️

Can't wait to leave

It wouldn't be fairer for me. My house has doubled in value since I bought it 30 yrs ago, partly because my area has become popular with middle class lefties. I still exist pay cheque to pay cheque on minimum wage though, so taxing me based on my house value would totally screw me.

Stamp duty is the most horrid tax.

We live in London and haven't bought because of it.

We will most likely move in a few years time and it's just a lot of money down the drain.

Besides being prohibitively expensive it means you are forced to rent unless you're sure you will stay in the place for many years.

As the other commenter states even 1M doesn't buy you anything particularly luxurious in London.
Example:

https://www.rightmove.co.uk/properties/89988807#/?channel=RES_BUY

Why should someone in an expensive area pay 3-6x more tax for the same property? Are they consuming more public services? Often it's the other way around, the expensive area have high density and are cheaper to serve than areas with houses far away from each other.

So for decades our council tax in the North os sent to central government and our local council receive a smaller % back. The North is subsidising the South.

Job opportunities, public transport, even things to do socially, are all better the further south you go. It is more valuable to live in the South therefore you pay more for a house.

Move North, treat yourself to one of those £300K detached houses.

People pay different amounts in council tax now. Might be based on band your house is in or how much your council needs.

Poll tax was fairer.

Is this thread still doing the rounds? Jeez OP it’s not half triggered you. Mind it might not happen.