Friday, May 4, 2018

Given current prices it isn’t surprising

People much less likely to move home than in the 1970s

People are less likely to move than in the 1970s. Given the distance between rungs in "the housing ladder" I'm not at all surprised. As a linked video says 'It costs so much to move and the houses aren't there'.

Posted by tenyearstogetmymoneyback @ 07:45 AM (2933 views)
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3 thoughts on “Given current prices it isn’t surprising

  • Largely due to gvmt policy:
    -Stamp Duty – you can lose a year’s net earnings or more in a move. Not justified unless you get a life changing increase in salary
    -High house prices – space between rungs is too far for many more people now
    -Cliff edge tax effects when changing jobs – loss or reduction in childcare vouchers
    -No carrots or sticks for folk to downsize to free up stock for labour mobility

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  • stillthinking says:

    I think stamp duty is huge, because property sales are usually chained and those chains involve upsizing or downsizing. So stamp duty blocks the chain and affects all price bands. The government will only consider reducing the tax to improve the tax take i.e. if the tax is so onerous that it lowers revenue.
    And it doesn’t, they are getting more cash
    http://www.knightfrank.co.uk/blog/2017/07/28/annual-uk-residential-stamp-duty-revenue-tops-89bn
    so the damage to the overall economy is neither here nor there.

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  • @2 In Australia they estimated that stamp duty destroys 73c for every $1 raised – much, much worse than just about any other major tax. They’re replacing it with an increase in annual taxes in a fiscally neutral way. The deadweight costs of the latter are far, far lower.

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