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?

" People living in normal houses (and believe me, a £550k house is very normal round here) shouldn’t have huge raises in council tax "

That is only because interest rates have been too low for too long (see the graph posted by another poster for a stark picture of how far away from normality recent borrowing rates have been) As house values adjust to the new (returning) economic reality ordinary people on ordinary wages won"t be living in "half-million pound houses", the government probably know this as they get ready to tinker with council tax.

There is nobody living in a £550,000 House who is earning normal wages these days.
Nobody

Where did I suggest that we did?
I was responding to this post, which stated that everyone has already paid tax. They haven't. Some have paid none.

People in “more expensive” houses have ALREADY paid more tax, in the form of Stamp Duty? I have just paid an enormous stamp duty bill. And I paid it from already higher rate taxed income. To say I’m not paying my “fair share” is frankly ludicrous'

That's irrelevant when it comes to deciding on current taxes. The fact that the paid peanuts 30 or 40 years ago compared to today's prices is also irrelevant. Any property taxes should be based on current values. In the US, the values are updated annually.

Yep that was me, I’ve paid the enormous tax bill. It’s easily identifiable, I can prove it very simply. Will they take account of that in the upcoming budget? I doubt it! How is that “fair”?

In the US people in nice areas are paid very well. In some states like Florida there is not income tax for example.

It would make sense if they added more bands.

It’s always struck me as odd that the top band covers everything from a slightly better than average house in a good area to a 30 bed mansion with acres of land.

The top band covers a huge spectrum of value of property and the ability of the householder to pay will similarly cover a large spectrum.

in my my mind it would be fairer to add more bands so the just about managing at the bottom of the top band aren’t pushed over the edge, while those with deeper pockets could chip in a bit extra

Yup. Bought our £675k 4 bed house in SE last year and band G. It’s a good size home but not massive and £675k is still an average price in our area for a 4 bed, not fancy at all.

I have 3 kids so need 4 beds. Sick and tired of increasing costs everywhere we turn.

It's almost as if the current system was designed to give the easiest ride to the richest.

?Almost?

There are loads. Take any scruffy outer London Borough. I know Hounslow very well. £550k gets you a small unmodernised 1930s semi. Very typically occupied by older airport workers on average salaries. Many are from the S Asian community and bought decades ago.

I work at Heathrow. House prices are horrendous for airport workers. Young people live with parents until their 30s. The houses they would love to be able to afford are bands D and E so not relevant to this discussion but I have to keep jumping in to the thread to disagree when people think it’s easy for anyone living in an expensive house.

Agree

I’ve just added two pictures of what £550k gets you round here - commuter town in the South East. I’m a teacher, earning the same as someone trying to buy a house in a part of the country where I could get this kind of house for £200k or less. Do you really think people owning these kind of houses should be in the second to top council house band? We’re not rich.

People are leaving Florida in droves because whilst there’s no income tax everything else is taxed and they can’t afford it

Not average size houses.

But again it supply and demand if people weren’t prepared to pay that money then they wouldn’t sell for that money. If the banks weren’t prepared to lend that money they couldn’t be bought for that money.

If you don’t think these are average size houses, I think you’ve lost the plot. Where are families supposed to live?

And you’re missing the point. These are not deemed average in the council tax hands - they would be babd G, the second top! It’s literally insane that the government could be considering doubling council tax on this kind of house - it would be around £700 a month round here.

I agree with you that it's not fair. Taxes are generally unfair to some and generous to others.

I was making the point that they use up to date values in the US, not 1991 values and that's what the UK should use too. I know that some states have no income tax. I think most of us would be thrilled to pay US levels of tax but most people on MN live in the UK (for now!) and that's what we're talking about here.

Crazy! I really hope those renters don't get hit.

Where do you think most families are living now?
I’ll give you a little hint it’s not in a 550 grand House whilst earning £40,000 a year

I’ve searched those houses @CeciliaMars and used the government checker and they are all d and e on that commuter town road. The house on the left anyway. Can’t be bothered to do both. So although they are expensive compared to other areas the 1991 formula keeps them in comparatively the “correct” banding and are not band g.

Actually they pay plenty of taxes in Florida, it's just not based on income simply because there are so many retirees and part time residents (for the weather). It's not a comparable population.

More to do with the budget and potential tax changes than AI?

https://www.investing.com/news/earnings/rightmove-shares-crashes-over-25-after-2026-profit-forecast-cut-on-higher-ai-cost-4341271

Many of those houses do not sell so well any more though?

When borrowing rates were at all time lows a couple on those wages could have done it easily enough, maybe some savings/equity in the background, does not mean the house is worth that now though.