council tax band G & H to double

[StrawberryThief1930]

has anyone seen the rumours that the council tax rates for bands G and H are going to double?

I know everything is just rumours at the moment but im worried this one might stick. easy to implement in an existing system and doesn't require the revaluation of thousands of houses etc.

I'm about to buy a G band house. Seriously questioning whether we can afford it. The current council tax is £4k a year. so £8k a year. Over £300 a month more than we had budgeted. we have spreadsheets coming out of our ears trying to check we can afford this house. Buying with a 40% deposit. im sweating...

anyone have the same worries? or further thoughts?

I think if the government have definitely ruled some things out, they should say so as this, among other proposed tax hikes, is stalling the property market.

I am hoping they see sense on this. There must be so many income poor people living in band G houses that simply cannot afford an increase of this scale. All the properties on our road are band G and above and many of our elderly neighbours simply could not afford another £4k a year on their council tax.

Another scary rumour, this budget is causing more trouble in the housing market and for businesses, etc, and it hasn't even happened yet. The trouble with council housing bands is so many of them are many years out of date, based on when they were last sold, so hardly a fair way to tax people. And would this add to council income or be clawed back by government?

And presumably landlords would have to pass the rise on to tenants, so not just a tax on the supposedly wealthy.

Doubling is just ridiculous too.

@BadgernTheGarden Renters usually pay council tax direct themselves anyway.

Time for the elderly to downsize?

g rated houses are very expensive properties to start with. By contrast mine is band d (3 bed plus study, garage so hardly slumming it) only mansions/ properties worth millions are in band h

Yes sorry OP hard to feel sorry for you on this one?!

Don't buy a house you can’t afford….

Yes elderly people / ‘income poor’ people should be moving out big houses to downsize. Otherwise you have huge overcrowding.

Issue is that the housing market is dead with few buyers out there. My area is saturated with houses with people wanting to downsize or move to a cheaper area.

It depends where in the country you live.

It's not always that simple though. My MIL is in a 4 bed detached and would love a bungalow or 2 bed house but there simply isn't anything in her town, and she doesn't want to move far because of her social life. Oh, she could buy a Mccarthy retirement flat which would be perfect for her but that comes with all the insane fees.

They are not all big houses though, many band G properties in the South East and especially in London are relatively small flats, just in expensive areas.

Give an example.

I’d say the opposite - the North seems to have some ridiculously banded housing that isn’t millions in G and H.

Luxury flats surely?

That would be fine if there was anywhere to downsize to! DH & I have been looking for a bungalow in this area for ages - even small bungalows round here cost more than our 4-bed detached and most of those are being extended upwards anyway.

@justasmallbiz
Here’s a 1 bed flat, band G
https://www.rightmove.co.uk/properties/168599819

I live in East Midlands and 4 bed detached is band D

Ok here you are, other than a pretty view it does not look that amazing to justify £8k a year in tax. Also it is hardly fair that a property valued at slightly less would pay around £2.5k in tax. This policy will create a massive cliff edge.

www.rightmove.co.uk/properties/164527625#/?channel=RES_BUY

It is not just the elderly it will affect too. There are many famiities in the South East and London in band G properties with high mortgages and childcare costs who lack the disposable income to afford £8k council tax a year.

They would probably find it hard to sell as well if this policy came into place as everyone would want band F properties instead and the prices of these would get pushed up.

I guess if it did happen, income poor people would continue to get the council tax reduction they receive now? So it would make no difference to them?

I don't think it is a particularly good idea, though. Lots of fairly modest properties fall into that CT band as well as million pound plus properties. It would be fairer to have more bands, I think.

Our house is E and our payments are only just shy of £300 a month. We pay more in the south west than my in-laws pay in Kent in a house worth £100k more. I think the rhetoric of the “hard done by south east” needs a reality check.

Ouch. We are band E and pay £200 a month. I thought that was bad enough! Bog standard 3 bed semi, no extensions.

The current income limits are £10k to £15k (depending on council) to get a reduction. So in theory, someone with an income of £16k living in a band g property would have to pay half their income on council tax.

What makes you think it will be the elderly who have to downsize? According to another thread I’m on the “elderly” are rolling in cash, it’s more likely working age people will be just as hard hit who have borrowed to their maximum whilst interest rates are relatively low, time for the squeezed middle to downsize?

🙄