When this came in, i opposed it because i expected it to have a minium effect on property prices. It seems that has been born out.
Allowing people to avoid the charge for five years by putting homes on the market has offered a very easy opt out of payment for any owner who isn’t rich enough to pay the charge.
At the prices they are being sold for, all that will happen is that owners who can’t afford the charge will be replaced by wealthier ones who can. Such owners are also now less likely to need to rent homes out, so that will further harm the economy.
Sadly, all this was very predictable and was so by many comments on subs like this where they were downvoted because it wasn’t what people wanted to hear. Hopefully a more sensible approach will be adopted in future, but that seems very unlikely.
I think something that isn’t fully understood in the UK is the level of wealth inequality. People are aware that it’s a thing, but not aware quite how huge the gulf is. If you’re thinking of investing in a second home in a place like Pembrokeshire (especially the touristy hotspots), you must be wealthy. Not just comfortable, *wealthy.*
Therefore the council tax on the second home increasing by 200% is a drop in the ocean to them. They probably grumbled and groaned about it but ultimately paid up without taking any noticeable financial hit. Anyone who was thinking of buying a second home in Pembrokeshire but decided not to because the council tax is higher probably couldn’t afford a second home in Pembrokeshire in the first place.
None of this is to say I’m opposed to the tax hike. I think it’s a good way for cash strapped councils to raise money without putting the burden on residents who are already struggling. But anyone who thought this alone would stop the tide of second homes is being naïve.
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When this came in, i opposed it because i expected it to have a minium effect on property prices. It seems that has been born out.
Allowing people to avoid the charge for five years by putting homes on the market has offered a very easy opt out of payment for any owner who isn’t rich enough to pay the charge.
At the prices they are being sold for, all that will happen is that owners who can’t afford the charge will be replaced by wealthier ones who can. Such owners are also now less likely to need to rent homes out, so that will further harm the economy.
Sadly, all this was very predictable and was so by many comments on subs like this where they were downvoted because it wasn’t what people wanted to hear. Hopefully a more sensible approach will be adopted in future, but that seems very unlikely.
I think something that isn’t fully understood in the UK is the level of wealth inequality. People are aware that it’s a thing, but not aware quite how huge the gulf is. If you’re thinking of investing in a second home in a place like Pembrokeshire (especially the touristy hotspots), you must be wealthy. Not just comfortable, *wealthy.*
Therefore the council tax on the second home increasing by 200% is a drop in the ocean to them. They probably grumbled and groaned about it but ultimately paid up without taking any noticeable financial hit. Anyone who was thinking of buying a second home in Pembrokeshire but decided not to because the council tax is higher probably couldn’t afford a second home in Pembrokeshire in the first place.
None of this is to say I’m opposed to the tax hike. I think it’s a good way for cash strapped councils to raise money without putting the burden on residents who are already struggling. But anyone who thought this alone would stop the tide of second homes is being naïve.