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The uk already has a fairly progressive property tax call stamp duty and many councils in the UK have property taxes (or at least our equivalent called council
by ck425 7y ago
The uk already has a fairly progressive property tax call stamp duty and many councils in the UK have property taxes (or at least our equivalent called council tax) for empty properties. The problem persists not because of billionaire investors but due to:
- Easy capital access in the form of cheap buy to let mortgages. Easy access to leverage mean property out performs pretty much every other investment and much of the middle class can afford it.
- Lack of regulation on tenancies. Very very easy to kick people out and up the rents.
- General shortage. The uk simply doesn't build enough houses. This is made worse by many jobs existing primarily in London / many graduates not realising that there are opportunities outside of London.
- pjc50 7y agoStamp duty is not a proper property tax because it's only paid on transfer of the property. I'd quite happily abolish it in favour of a true annual valuation-based tax. Besides, it's quite easy to evade: have the property be owned by a shell company in an opaque jurisdiction. Sell the company.
- Scoundreller 7y agoAnd it discourages/punishes people from moving to the right home for their changing family size/situation and changing job situation. Instead people end up commuting longer distances.
- NeedMoreTea 7y agoStamp duty is only levied at sale, that is hardly the same thing as is usually understood by property taxes. Council tax is absurdly regressive (intentionally so).
- pro_zac 7y agoCouncil Tax is paid by the tenant. This does not discourage the wealthy from hording investment properties.
- ck425 7y agoIf you hold property that's not inhabited you pay council tax on it. It's a less than ideal tax but it does tax property hoarding.