Would this wheeze help with house prices?

westernpromise

It's about improving supply. There is a supply of under-occupied houses that would be sold were it not for the huge tax penalty levied on those who do it.

A shortage of houses for sale does not equal a shortage of houses.

Cornucopia

westernpromise wrote: »

It's about improving supply. There is a supply of under-occupied houses that would be sold were it not for the huge tax penalty levied on those who do it.

What is the size and scope of this "huge tax penalty", though? If I buy a typical 2-bed Flat in a reasonable part of Kent or Essex, I'll probably by paying £150-175k, so the Stamp Duty isn't vast.

A shortage of houses for sale does not equal a shortage of houses.

There is a shortage of homes in specific parts of London and the South East. This is due to a complex range of factors, and on balance, I'm not convinced that Stamp Duty is a major issue.

Filo25

It sounds like a tax change that old people would hate and therefore unlikely to happen

PasturesNew

The reason most don't downsize is because when you try it and see what your money gets you, it's so much less than you expected.

There's also a shortage of these mythical smaller homes.

If you have, say, a £400k house you might have 4-5 bedrooms, 2-3 bathrooms, an en-suite, garage, large/private garden, a utility room, large kitchen.....

You think £200k as a downsize is a good idea, then realise that's a 1-bed grubby flat on the 4th floor with 1 parking space.

I've seen them on the telly "we're downsizing..." - then you see what they want and hear what they think as they see each property ... and they're usually downsizing from one 4-bedder to another!

ukcarper

PasturesNew wrote: »

The reason most don't downsize is because when you try it and see what your money gets you, it's so much less than you expected.

There's also a shortage of these mythical smaller homes.

If you have, say, a £400k house you might have 4-5 bedrooms, 2-3 bathrooms, an en-suite, garage, large/private garden, a utility room, large kitchen.....

You think £200k as a downsize is a good idea, then realise that's a 1-bed grubby flat on the 4th floor with 1 parking space.

I've seen them on the telly "we're downsizing..." - then you see what they want and hear what they think as they see each property ... and they're usually downsizing from one 4-bedder to another!

I think you make a good point I've considered downsizing but going from a 4 bed detached to a 2 bed semi bungalow would net me about £25k. I'd consider a flat but they generally do not have a garage or outside storage and as I have a large amount of equipment I need for my hobby I need somewhere secure to store it, also flats incur maintenance and ground rent charges.

Pennywise

westernpromise wrote: »

IA shortage of houses for sale does not equal a shortage of houses.

Exactly. But it's not just people occupying houses too big nor unoccupied houses due to working abroad, being in a home, executor delays, etc. The bigger issue is the sheer huge amount of unused property in city centres.

Just look at floors 2 and 3 of most city centre shopping areas and you'll see either empty space or little used storage. Before shops took over city centres, most of these properties would have been residential, or maybe living accommodation above the ground floor business such as an office or surgery.

Something should be done to bring that unused property back to life, such as incentives/grants for property owners to convert them to residential. Yes, it's not easy to put in separate entrances, separate utilities etc., hence why landlords don't do it. But the sheer amount of unused space is a travesty at a time when there is an apparent shortage. Grants/incentives cost a lot less than building new housing estates not to mention loss of green space, infrastructure etc - city centres have all the infrastructure in place and should be encouraged.

economic

ukcarper wrote: »

I think you make a good point I've considered downsizing but going from a 4 bed detached to a 2 bed semi bungalow would net me about £25k. I'd consider a flat but they generally do not have a garage or outside storage and as I have a large amount of equipment I need for my hobby I need somewhere secure to store it, also flats incur maintenance and ground rent charges.

as opposed to a house being maintenance cost free? where can i buy houses free of maintenance? must be a super-house. lol

not all flats have a ground rent.

ukcarper

economic wrote: »

as opposed to a house being maintenance cost free? where can i buy houses free of maintenance? must be a super-house. lol

not all flats have a ground rent.

Most of the flats I've seen have ground rent and why leave a well maintained house where I have control over what I spend and am able to do some maintenance myself to a property where I have no or limited control.

But the biggest problem is the lack of a garage the flats that do have garages in my area are older and not so well insulated.

economic

ukcarper wrote: »

Most of the flats I've seen have ground rent and why leave a well maintained house where I have control over what I spend and am able to do some maintenance myself to a property where I have no or limited control.

But the biggest problem is the lack of a garage the flats that do have garages in my area are older and not so well insulated.

i agree they can be a pain sometimes. however i would never sacrifice location for having a house instead of a flat. a flat in desired location >>>>> house in 2nd choice location.

my flat in highgate has no ground rent and well maintained and reasonable service charge.

Cornucopia

There's more to downsizing than simply swapping one's home for a smaller one. There is also the question of Location (or should that be Location, Location, Location?)

In the South East of England there are significant prices differences between areas, largely dependent on their proximity to London - so much so that downsizing may not even involve a reduction in property size.