http://www.dailymail.co.uk/pages/live/arti...in_page_id=1770

The idea of an annual house price tax isn't yet official Lib Dem policy, but it is something that has been discussed at party conference and has many strong supporters and advocates within the party. I don't think the Conservatives would support this, but I could see Labour moving this way especially as the tax revenue would be tempting - it also taxes unearned income rather than productive work which is very Gordon Brown (assuming he still really controls the treasury).

The example used is the Danish situation, where the tax does seem to have provided some stability to the housing market and has certain other benefits, including causing people to buy houses suitable to their needs, ie why pay loads of tax when the children have left home or you are a loan pensioner, whilst some one working with a family might chose to meet the extra cost for that time period.

The suggested rate is 1% per annum. This would be very interesting and would certainly cool the market, I guess the main challenge would be not bankrupting certain people. For instance where I live there are quite a lot of people in £800k homes who are living on less than £20k a year in retirement. Clearly the tax would be spur for them to move on which would actually be sensible (can you afford to properly maintain a £800k home on £20k income?), but equally some might chose to stay which could result in a form of self inflicted hardship.

Any thoughts on this? I quite supportive of this idea myself, though I could see it getting trashed by the likes of the Daily Mail (see link at top).

I think it's a great idea (to replace council tax); but would never be implemented unless it was after a serious property crash.

I have posted an article from the Guardian on this.

I also think it is good idea:

http://politics.guardian.co.uk/comment/sto...2190547,00.html

I don't think it is a good idea because you can be penalised because you once bought a house and:
- you had a change of circumstances, so reduced income
- the area suddenly got trendy, even though you don't want it/don't benefit from it

Don't forget, houses "worth" a lot can equally be council houses and private lets as owner-occupied.

I am in the camp of "the taxes pay for things we ALL should contribute to (and/or use), so everybody should pay something" I think being linked to income tax might be a fairer/easier way to collect it. Although of course the wealthy/self-employed and doing all right, all have ways of making their income look like nothing on paper.

If you linked to household income, do you think it's fair that people sharing, because they can't afford to live alone should pay far more than someone next door who lives alone in an identical 4 bed house? I don't.

Also, what about when kids finish school/college/uni and don't have a penny to their name (only debt) decides to live at home for a few years before moving out the nest egg? A local income tax wouldn't encourage this, it would do the opposite.

In favour of land tax - previous post.....


http://www.housepricecrash.co.uk/forum/ind...mp;#entry801684

Politicians should reform the way we pay taxes with a shift from taxing earnings/savings and things that are productive to society to taxing things that are unproductive and cause a burden to individuals/businesses because of speculation. Increasing land prices which benefits only the speculators and the rich, transfers wealth from poor to rich whilst driving out investment in the UK economy whilst leading to continued boom/bust cycles.

I've finished reading 'Boom Bust - Housing, Banking and the Depression of 2010' last month and it's one of the best books to buy if you want to understand why this $hit happens every 18 years and why we need a land tax. It's what Fred Harrion has been advocating for the last 20/30 years in the numerous books he's written - he explains how taxing the unearned income from what is a natural resouce would put an end to land/property speculation and lead to stable house prices.

It's been revised with the lastest version coming out in December I think, plus a thread on here a few days ago regarding Fred Harrison:

http://www.housepricecrash.co.uk/forum/ind...=62159&st=0

The problem is always the old people who may have the big house but later in life don't have the income.

And politicians better shut the f*** up about "well they don't NEED this house, it would be a good incentive for them to move". Because that is so at odds with how people see these things.

It's their home, where they brought up their family, it has happy memories for them, they want to have the kids and grandkids to stay now and then, and some polly telling them that they should be "incentivised" to move, will go down like a bacon sarnie at a synagogue.

And the people who live in a scruffy area that gets poshed up - their house may well be worth half a million, but they still have f*** all money. Again, telling them to move and cash in sounds pretty authoritarian - its their home - why should taxes force them to move?

And should a houseful of 6 working adults pay more than a couple living in the same house - they use more services after all. Or are the couple better off because they can afford not to house-share?

Maybe we should just do away with the farce that is "local taxes" completely and collect it all as income tax and VAT. Imagine the bureaucracy that would be eliminated if councils no longer had to keep records of houses, values, how many people, etc etc.....

Local taxation is a farce because over 75% of the money local council spend comes from central government anyway. Council tax only makes up a tiny percentage of council income. Central government can make one council appear to be providing better services by vhanging the complex formula that decides how much each council get.

Do away with the whole mess, I say. Save millions. Sorry to any council tax collectors out there, but your jobs could all go.

This will of course hit renters as well as home owners. I rent a £450K house (<£1k rent pcm) so dont want to see my £2100 council tax go up to £4500.

I plan on buying a house post-crash for £300K (adjusted for inflation). If a 1% house tax comes in, I'll buy a cheaper place further out in the country and just burn more petrol instead.

VMR.

Are you really renting a £450k house for under <£1k per month? If this is the case then the landlord/lady is clearly extremely stupid. If they put the £450k in the bank at 6% they'd get £2250 per month in interest. If they have a mortgage they'd pay out evenmore than that in interest.