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Voters Fall Off London's Housing Ladder As Super-Rich Leave Property Empty

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London's most desirable housing enclaves are haemorrhaging voters, according to figures fuelling fears that foreign buyers are turning prime property into vacant investment assets. More than 2,000 voters have disappeared from five wards in Westminster in the past 12 years, according to electoral registration data published this week.

http://www.theguardian.com/uk-news/2014/feb/24/voters-london-housing-ladder-property-empty-westminster

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Time for an empty homes tax.

By the backdoor it has already arrived. If a property has two or more occupants it pays 100% council tax, one occupant 75% CT, zero occupants 150%!

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By the backdoor it has already arrived. If a property has two or more occupants it pays 100% council tax, one occupant 75% CT, zero occupants 150%!

......so they will claim that one person lives there......and I am confident that the local authority will make rigourous checks to ensure veracity of the claims.

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......so they will claim that one person lives there......and I am confident that the local authority will make rigourous checks to ensure veracity of the claims.

So we can summarise that taxing a property on it's occupation is completely unworkable since people will always rig the figures so that the pay the least amount of tax.

I am all for increasing the number of council tax bands from A to Z, then using an estimated price (from zoopla) to calculate their tax liability - Just like they do in Ireland.

http://www.citizensinformation.ie/en/money_and_tax/tax/housing_taxes_and_reliefs/local_property_tax.html#l62fd2

The Local Property Tax (LPT) is based on market value bands. The first band covers all properties worth up to €100,000. Bands then go up in multiples of €50,000. If a property is valued at €1 million or lower, the tax is based on the mid-point of the relevant band at a rate of 0.18%. For properties valued over €1 million the tax is charged at 0.18% on the first €1 million of value and 0.25% on any balance in excess of €1 million, with no banding applied.

Local Property Tax Table

Valuation band, € Mid-point Rate LPT for a full year 2013 LPT 0 - 100,000 50,000 0.18% 90 45

100,001 - 150,000 125,000 0.18% 225 112

150,001 - 200,000 175,000 0.18% 315 157

200,001 - 250,000 225,000 0.18% 405 202

250,001 - 300,000 275,000 0.18% 495 247

300,001 - 350,000 325,000 0.18% 585 292

350,001 - 400,000 375,000 0.18% 675 337

400,001 - 450,000 425,000 0.18% 765 382

450,001 - 500,000 475,000 0.18% 855 427

500,001 - 550,000 525,000 0.18% 945 472

550,001 - 600,000 575,000 0.18% 1,035 517

600,001 - 650,000 625,000 0.18% 1,125 562

650,001 - 700,000 675,000 0.18% 1,215 607

700,001 - 750,000 725,000 0.18% 1,305 652

750,001 - 800,000 775,000 0.18% 1,395 697

800,001 - 850,000 825,000 0.18% 1,485 742

850,001 - 900,000 875,000 0.18% 1,575 787

900,001 - 950,000 925,000 0.18% 1,665 832

950,001 - 1,000,000 975,000 0.18% 1,755 877

Properties worth more than €1 million will be assessed on the actual value at 0.18% on the first €1 million and 0.25% on the portion above €1 million.

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I'm surprised it's as small as that. There's some parts of central London that are more or less deserted from what I can see. The last time I was in South Kensington I walked around a few of the squares and there were loads of free residents parking spots, which was most certainly not the case 20 years back.

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By the backdoor it has already arrived. If a property has two or more occupants it pays 100% council tax, one occupant 75% CT, zero occupants 150%!

I don't know how it works, but I heard that there was a loophole which allowed second-home owners to circumvent this by registering the property as a business.

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By the backdoor it has already arrived. If a property has two or more occupants it pays 100% council tax, one occupant 75% CT, zero occupants 150%!

150% council tax will hardly break the bank for 2nd home owners will it?

Edited by Eddie_George

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By the backdoor it has already arrived. If a property has two or more occupants it pays 100% council tax, one occupant 75% CT, zero occupants 150%!

This really is insignificant though for the sorts of houses we're talking about. Even if full council tax was a hefty £2,000, the penal element for non-occupation would only be a further £1,000 per annum. The sorts of people who own those houses would think nothing of spending that on a couple of fancy martinis.

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150% council tax will hardly break the bank for 2nd home owners will it?

It's high time there was a further CT band for very expensive properties. Around here (Kingston) band H properties which might perhaps have been worth 50% more or double band G properties 20 years ago, can easily now be worth 3 or 4 times the band G. In Central London the differential can be a lot more marked. Anyone who can afford to pay £3, 4 or 5M+ can afford to shell out a bit more CT.

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It's high time there was a further CT band for very expensive properties. Around here (Kingston) band H properties which might perhaps have been worth 50% more or double band G properties 20 years ago, can easily now be worth 3 or 4 times the band G. In Central London the differential can be a lot more marked. Anyone who can afford to pay £3, 4 or 5M+ can afford to shell out a bit more CT.

Won't work. LabourTory will wheel out the tried and tested 'single cashless granny living all alone in her mansion' example, and the great British public will fall for it.

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It's high time there was a further CT band for very expensive properties. Around here (Kingston) band H properties which might perhaps have been worth 50% more or double band G properties 20 years ago, can easily now be worth 3 or 4 times the band G. In Central London the differential can be a lot more marked. Anyone who can afford to pay £3, 4 or 5M+ can afford to shell out a bit more CT.

To be fair the amount paid on stamp duty (assuming no loop hole) is already so vast on anything over 600k that its like paying more CT except government gets it up front.

Not saying that's bad just that we already have a ridiculously stepped tax.

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To be fair the amount paid on stamp duty (assuming no loop hole) is already so vast on anything over 600k that its like paying more CT except government gets it up front.

Not saying that's bad just that we already have a ridiculously stepped tax.

Eh, it's 4% over £500k. Not really that excessive in a global context, though it could be more progrssive I suppose.

Spain charge 7% on all second-hand property purchases, 10% on new ones.

In the US you pay around 1.5% annually as a property tax.

So the property tax on this under the US system

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=25287882&sale=50444165&country=england

would be £45,000/year.

Instead the (presumably foreign) owner, pays just £1362 in council tax.

Edited by bambam

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Eh, it's 4% over £500k. Not really that excessive in a global context, though it could be more progrssive I suppose.

Spain charge 7% on all second-hand property purchases, 10% on new ones.

In the US you pay around 1.5% annually as a property tax.

So the property tax on this under the US system

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=25287882&sale=50444165&country=england

would be £45,000/year.

Instead the (presumably foreign) owner, pays just £1362 in council tax.

I'm not sure extra taxes achieve anything in this case. Extra taxes for really big properties could just mean that owners would do the most basic of flat conversions and then keep them empty?

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So we can summarise that taxing a property on it's occupation is completely unworkable since people will always rig the figures so that the pay the least amount of tax.

I am all for increasing the number of council tax bands from A to Z, then using an estimated price (from zoopla) to calculate their tax liability - Just like they do in Ireland.

Valuation band, € Mid-point Rate LPT for a full year 2013 LPT

0 - 100,000 50,000 0.18% 90 45

100,001 - 150,000 125,000 0.18% 225 112

150,001 - 200,000 175,000 0.18% 315 157

200,001 - 250,000 225,000 0.18% 405 202

250,001 - 300,000 275,000 0.18% 495 247

300,001 - 350,000 325,000 0.18% 585 292

350,001 - 400,000 375,000 0.18% 675 337

400,001 - 450,000 425,000 0.18% 765 382

450,001 - 500,000 475,000 0.18% 855 427

500,001 - 550,000 525,000 0.18% 945 472

550,001 - 600,000 575,000 0.18% 1,035 517

600,001 - 650,000 625,000 0.18% 1,125 562

650,001 - 700,000 675,000 0.18% 1,215 607

700,001 - 750,000 725,000 0.18% 1,305 652

750,001 - 800,000 775,000 0.18% 1,395 697

800,001 - 850,000 825,000 0.18% 1,485 742

850,001 - 900,000 875,000 0.18% 1,575 787

900,001 - 950,000 925,000 0.18% 1,665 832

950,001 - 1,000,000 975,000 0.18% 1,755 877

http://www.citizensinformation.ie/en/money_and_tax/tax/housing_taxes_and_reliefs/local_property_tax.html#l62fd2

Hold on, so local tax in Ireland for me would be 315 euros a year, yet I'm paying about £2200 here?!

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