A solution for London?

BobQ

http://www.bbc.co.uk/news/world-us-canada-36956034

Vancouver 15% property sales tax on foreign buyers

A solution for London?

vivatifosi

Interesting, thanks Bob. I was in Vancouver last year and the headlines then regarding not being able to get on the housing ladder could equally have applied to London. It's a beautiful city, I can see why people live there.

I wonder how this move compares to those in other markets. IIRC Australia prohibits the buying of certain properties by overseas buyers in some overheated markets.

I doubt this will happen here, but the extra funding it would raise would be useful.

michaels

On the other hand how are we going to continue to run a huge trade deficit on iphones and (other) chinese tat if we don't put up buytoleave boxes next to the thames and sell them to foreigners for 10x the construction cost?

CLAPTON

what does 'foreign' mean; e.g. foreign born like people from the EU or people not from the EU or non resident foreigners or what?

how many 'foreigners' (so defined) buy properties in the London area each year?

stopping immigration would solve london housing problems over a period of time

cells

high house prices is a good problem to have. what would we rather do, send thousands of kids down mines to bring up 20 million tons of black rocks worth £1 billion or build a single block of 10 flat next to hyde park and trade it with some Russians for 20 million tons of coal?


If prices are getting high in London, the locals are being given the option of bags of money to move to Birmingham. The average terrace in Birmingham is £140k vs £490k in London. The solution is for some of those Londoners to move to Birmingham (or elsewhere in the UK) and bag the difference.

Also its a big benefit for the biggest landlord in London, the state. 850,000 social homes mostly in the more expensive inner London areas. An asset worth in the region of £350 billion. A 10% fall is £35B less for the state. A 10% increase is a £35 billion gain for the state.

And lets not forget the huge quantity of taxes London property brings in. Not only in stamp duty but also capital gains tax and inheritance taxes. If London becomes Birmingham what taxes will fill the gap in the lost/lower stamp/capital/income/inheritance taxes?

cells

BobQ wrote: »

http://www.bbc.co.uk/news/world-us-canada-36956034

Vancouver 15% property sales tax on foreign buyers

A solution for London?

High end London property already has transaction taxes close to that. A £20 million property in London pays a 14.57% transaction tax

Just imagine that, paying £2.9 million in taxes to just buy a house!

If Clapton has his way that house will fall to £2 million and only pay £0.2 million in taxes. You will have to pay higher taxes to make up the loss of the rich folk buying and selling property to each other that is just as unaffordable to average folk at 1/5th the price

melanzana

100% CGT on sales to Foreign buyers who sell at a profit.

Companies included (How I don't know) but still....

Yay, I await the doomsters who will put me right!

buglawton

Did everyone miss the news over last 2 days that all English cities, Manchester foremost, now have lowest owner-occupier rate since the 80s? Meaning the 'London' problem has already become a UK problem.

lisyloo

Just an anecdote, a colleague moved from a 2 bed in Berkshire to a 4 bed in Birmingham. Her commute is 20 mins longer but is luxurious in comparison.

She does have family in London though.
I don't think I would be willing to move away from both family/friends AND work and yo somewhere I knew no-one.

CLAPTON

cells wrote: »

high house prices is a good problem to have. what would we rather do, send thousands of kids down mines to bring up 20 million tons of black rocks worth £1 billion or build a single block of 10 flat next to hyde park and trade it with some Russians for 20 million tons of coal?


If prices are getting high in London, the locals are being given the option of bags of money to move to Birmingham. The average terrace in Birmingham is £140k vs £490k in London. The solution is for some of those Londoners to move to Birmingham (or elsewhere in the UK) and bag the difference.

Also its a big benefit for the biggest landlord in London, the state. 850,000 social homes mostly in the more expensive inner London areas. An asset worth in the region of £350 billion. A 10% fall is £35B less for the state. A 10% increase is a £35 billion gain for the state.

And lets not forget the huge quantity of taxes London property brings in. Not only in stamp duty but also capital gains tax and inheritance taxes. If London becomes Birmingham what taxes will fill the gap in the lost/lower stamp/capital/income/inheritance taxes?

only in mad cells world is living in small pokey expensive shared shoebox a 'good thing' and a sign of wealth.

In cells mad world the answer to ever higher wealth and high GDP and higher taxes is to stop building in London and force prices higher.

zagubov

I doubt London being low-rise and low-density housing, has room for housing for its own workers.

The idea that it has room for foreign people to buy housing and leave it empty is a sign of stupendous misgovernment.