Sunday, Oct 29, 2006

Oh - Rich Homes Owners Get Hit - Sad ...

Torygraph Online: Council tax to soar 300% for homes in nice areas

I almost cheered when I read this. How often have I had to put up with my property owning friends boasting how rich they are and how clever they are to have earned this wealth by ... sitting on their bottoms and doing nothing. “I’m currently paying just over £1,000, but in 2007-8 my bill is going to go up to nearly £4,000,” said Mr Kelly. “I get by on a civil service pension of £100 a week – how am I supposed to afford it?” Well, clearly you need some financial education because no civil servent I know will retire on a pension of £100 per week. (And I have to work with the idle lot). Secondly, Mr Kelly has "benefitted" from the increasing value of his home, so YEP - you get to pay for that benefit. So, SELL up and ADD to the list of factors required to precipitate a HPC. Golly: Raising the burden of tax upon the rich is a new concept for this Glubberment.

Some friends only bought their home in the SW because it was what they could afford, have bored me for years. They are on the financial edge and this could push them over. I wonder how many others are in this boat.

Posted by talking rot @ 08:14 AM (533 views)
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9 Comments

1. Nohpc said...

Your arguement is severely flawed. A lot of homeowners in nice areas are not rich and will suffer alot with this. I don't think there should be a council tax at all it should be just be factored into income tax which would farely tax the rich. Don't forget that any money above 30 thousand already gets taxed at 40%. I doubt very much this will actually happen as no goverment will get voted in with this idea behind them.

Sunday, October 29, 2006 08:29AM Report Comment
 

2. Midlandred said...

This is another attempt by Gordon Brown to fill the massive, growing black hole in the public finances. He will squeeze taxpayers until the pips squeak rather than sack any of his vast army of New Labour-voting diversity officers and the like.

Sunday, October 29, 2006 09:04AM Report Comment
 

3. Surfgatinho said...

Erm, Talking Rot, there is a bit of a difference between those who bought a house to live in 20 years ago to live in and those who hafve been buying as investments. So beleive it or not there are plenty of people who don't actually care how much there house is worth and have no control over it, so why penalise them?

Where I live (Cornwall) property prices have been driven up by retirees and second home owners. This probably makes it a nice area. So now not only is it completely unaffordable, but locals are going to get a double whamy with higher council taxes. Fair?

Anyway, hiking the council tax in 'nice areas' is going to create an even greater divide. So state schols in these areas will be inaccessible to all those except the well off.

Sunday, October 29, 2006 10:41AM Report Comment
 

4. Ebob said...

Personally, I think the higher bands should increase much more agfressively. Lets face it if foriegn oligarchs escaping to London with the their stolen billions, buying houses in cash (pushing up propoerty values), can afford to pay much higher levels of council tax. However, the government need to be carfeful, as after all the extra money will simply come from wage inflation. In this sort of property economy, giovernments have little else to tax. Therse are few jobs coming into Britains high tax economy these days (with the exception of Tescos etc al), actually the number of jobs are being reduced through outsourcing. More migrants are invited in, who tend to habit the non tax paying black economy. How elese will Gordon Brown plug the holes he has created. Tax the masses. Bring it!!!



Sunday, October 29, 2006 11:38AM Report Comment
 

5. talking rot said...

NpHPC and Surfgatinho

You are completely missing the point that wealth is measured by at least 2 means. Firstly, income, and secondly ASSETS. A home is an ASSET: You can buy one (or more) and you can trade them and most importantly, homes face the minimal level of taxation. (This is something the Treasury civil servants would like to change). NpHPC, you are wrong. At lot of homeowners are rich; they are ASSET rich, especially those whose luck enabled them to buy before the boom. If they want to continue to live in a nice area, fine, they can pay the bill. If not, they can realise the value of their asset and move somewhere cheaper. This is the law of the free market. Or are you suggesting there should not be a free market in houses? If so, then who do you decide are more deserving then others to benefit more greatly then the others?

Surfgatinho, which is more fair. Some one who bought a house 20 years ago and, by luck, happened to buy in an area where prices took off and so made themselves rich by do NOTHING. Or some one who adds to the economy by starting a business, employing other people, and earning sufficient money to have a good income (like my £45K-ish) but who was unable to buy 20 years ago. Who do you feel should be rewarded? Please be aware that your pension could be paid by my employees ...

Should you measure wealth in ASSETS and income, my property owning friends who earn less, who haven't started businesses and who don't employ people are far richer then me. So why do I have to pay more tax when they are richer then me? I can't afford their homes. Why tax people who have fought to make their own lives better?

NoHPC and Surfgatinho - if you are lucky enough to have children, look them in the eyes and think how on earth they will afford quality housing!

Sunday, October 29, 2006 10:15PM Report Comment
 

6. Surfgatinho said...

Talking Rot. A house is equal to one house in value if it is your home. You can borrow money against it and make your children better off when you die but I personally wouldn't regard a primary residence as a bankable asset.
If you become bitter with the people who were lucky enough to unwittingly buy a home when they were cheap then you are only going make yourself one very unahppy puppy!

Sunday, October 29, 2006 10:45PM Report Comment
 

7. indiablue19 said...

Nohpc ......

I'm definitely with you on this one. There is no sense in people who bought homes at minimal cost eons ago and may by now be pensioners on a fixed income being forced into higher and higher council tax just to survive. If people in fact can afford large payments to own a home and have in any way anticipated the expense of council taxes perhaps they will survive being hit with extraordinary council tax rises, but some areas which are now "posh" weren't when people bought years ago to have a modest residence and raise a child or two. There are numerous areas around us such as this that have become popular due to the housing shortages in the area and are being virtually reclaimed from demolition. In fact, some of the homes were considered to be in relative "slum" areas only ten or twenty years back, now the trend dictates that two-executive families are buying them up, restoring them completely and raising prices sky high.

Meanwhile, their neighbors, who have been years in the area are lucky to afford the skyward utility prices and reasonable amounts of maintenance, let alone twenty times the tax. Further, I don't see what these Councils are offering that warrants such increases. Around here, in the so-called posh side of town, you're lucky to have a street lamp fixed, the pot holes are legendary in size, police are scarce as hen's teeth, nobody cleans up the dog litter, parking permits cost a flaming fortune, we pay extra to maintain our street's private park, our mail delivery stinks and trash pick-up is about to be reduced to once a week. Coming home at night from a lovely restaurant you're likely as not to be accosted by anti-social drunks or confronted with panhandlers.

Not to be unnnecessarily graphic, but last night we had some utter maniac ringing flat bells, beating on doors, smashing antique garden ornaments and leaded windows with a metal bar, and shrieking threats to take his own life, at three o'clock am. It took the police nearly an hour to get here and take him in hand. When my neighbors and I called emergency the dispatcher nearly yawned with boredom and said they'd get around to it when they could. And this is the high rent district? I've lived in several countries in similar "luxury" areas and never seen the like. Luxury for whom?

The only efficient service is the traffic warden who slams a £30 fine on everything imaginable -- all profits to the City. Meanwhile, they've taken away every solitary spot our family or guests could possibly leave their car without paying a criminal fee for parking -- even through the weekend. And nearly doubled our vehicle license tax. So why should ANY of us pay more? What for? The only thing I see increasing is the salaries of those involved and accomodation for more tourists to trash the place. Lately I've noticed they close the centre city for events with no notice to residents and we can't even get out of this d**n city on a weekend without negotiating an endless number of police barriers. It's like living in a maze of stupid rules and ridiculous expense.

And while you're cheering for astronomical council taxes on the home owners, just remember, all renters out there will be hit with this amazing rates as well and what does any of us benefit, particularly as a temporary resident of the area ????

Sunday, October 29, 2006 11:27PM Report Comment
 

8. Nohpc said...

How about cut benefits to the able unemployed after 5 years no questions asked like in america? That would be more sensible than increasing taxes.

Monday, October 30, 2006 04:52AM Report Comment
 

9. inbreda said...

Surfgatinho - I will happily exchange one house for one house with you - assuming you own something better than a bedsit in a rough area of Nottingham.

Monday, October 30, 2006 10:04AM Report Comment
 

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