Labour plans and house prices

cells

caronoel wrote: »

The impact of most forms of regulation and property taxation often just results in the costs being passed onto tenants.

Another clanger of a policy from Comrade Milliband.

He would turn this country into Venezuela given half the chance

Some costs can be passed on but not all.

also how many £2m plus homea do you think are rented?
Here is a guess. Well under a thousand
A trivial number in a market with nearly 28 million homes

taxes need to be collected to oay for a civil society and it seems reasonable to set a 0.5% property tax. Thats still well below the 20-45% income taxes

Innys1

CLAPTON wrote: »

I'm sure normal economic rules will not be suspended so usual laws will apply


that is the price will rise but not by the full amount of the tax as the increase in price will discourage demand.

That would be the case if there wasn't a limited supply. That's not so.

Call me a greedy landlord if you like but I'm not paying tax twice for the same rental income.

Thrugelmir

Innys1 wrote: »

If Labour get into power and introduce this tax, my tenants will have to pay it. I certainly won't be paying it from the rent.

You won't have to. They'll let the debt roll up and seize the money when you die. :eek:

caronoel

cells wrote: »

Some costs can be passed on but not all.

You are a fool, if you think that landlords of expensive properties are going to swallow an industry wide charge like this.

This sort of punitive taxation (solely on rental properties) was tried in Ireland in 2000 to about 2002 under the Bacon report and resulted in a substantial increase in rental costs for tenants.

cells wrote: »

also how many £2m plus homea do you think are rented?
Here is a guess. Well under a thousand
A trivial number in a market with nearly 28 million homes

How wrong could you be?

In London alone, at this point in time Zoopla has over 3,500 home for rent in this price range:
http://www.zoopla.co.uk/to-rent/property/london/?include_retirement_homes=true&price_frequency=per_month&price_min=7500&q=London&results_sort=newest_listings&search_source=home

That's just London, and it excludes anything that Zoopla doesnt list.

Extrapolate that number across the UK and it runs a much larger number

cells wrote: »

taxes need to be collected to oay for a civil society

We pay taxes at far too high a level as it is.

Comrade Milliband is addicted to the tax and spend mentality of Labour in the Seventies and in the early noughties.

Hopefully this will be his undoing as we move closer to the election

cells wrote: »

... and it seems reasonable to set a 0.5% property tax. Thats still well below the 20-45% income taxes

This is a key issue - Labour love to tax both accumulated wealth as well as income.

Classic double taxation, coming down hardest on those who work hard to pay their taxes and contribute to their society.

In short, the mansion tax is inequitable. It isnt related to ability to pay and will push up rents for tenants.

More nonsense from Comrade Milliband

Thrugelmir

caronoel wrote: »

Extrapolate that number across the UK and it runs a much larger number

London has by far the largest concentration. In many areas even a £1 million can you buy you a lot of property.

Innys1

cells wrote: »

Some costs can be passed on but not all.

also how many £2m plus homea do you think are rented?
Here is a guess. Well under a thousand
A trivial number in a market with nearly 28 million homes

taxes need to be collected to oay for a civil society and it seems reasonable to set a 0.5% property tax. Thats still well below the 20-45% income taxes

That's not a great guess.

Plus, I thought the rate being proposed was 1%, not 0.5%? Whatever the rate, there's no source of income to pay it, other than the rent which has already been taxed.

A civil society is not one that taxes the same income repeatedly so that the individual is left with nothing, irrespective of the rate.

Innys1

Thrugelmir wrote: »

You won't have to. They'll let the debt roll up and seize the money when you die. :eek:

You think HMRC will wait another 40 odd years? Dream on.

CLAPTON

Innys1 wrote: »

That would be the case if there wasn't a limited supply. That's not so.

Call me a greedy landlord if you like but I'm not paying tax twice for the same rental income.

There is limited supply now so best to increase the price now and get the benefit from the increased rent without having to pay the tax.


I have no view about greed and landlords but simply commenting upon the economics.

IronWolf

Innys1 wrote: »

That's not a great guess.

Plus, I thought the rate being proposed was 1%, not 0.5%? Whatever the rate, there's no source of income to pay it, other than the rent which has already been taxed.

A civil society is not one that taxes the same income repeatedly so that the individual is left with nothing, irrespective of the rate.

I'd agree with this.

Why should a pensioner with little income but a house worth £2m because they bought it 40 years ago, have to pay such huge taxes?

And this will be just the start, mark my words, soon everyone will be paying the 'house tax'. Income tax was a 'temporary' tax to pay for the war with France, 200 years later this temporary tax is still in force.

padington

Do you think it might be possible that cheaper properties well under 2 million might become more sort after and increase in price whilst properties anywhere near 2 million and over will become much less sort after and crash in price ?