Own your property outright? CPIH should worry you

[OwlHoot]

Just a hunch, but something tells me the following are connected:

2015-02-25 Outright owners of homes outstrip mortgage holders for first time since 80s

2016-11-15 Move to new UK inflation measure sparks controversy

Given how desperate they are for funds, I reckon the Government has secret plans to tax outright property owners on the value of the fictitious rent they pay themselves to live in their own place, in addition to council tax of course.

No doubt the Government will argue that outright property owners have an unfair advantage over renters and mortgagors, and extra funds should be made available to hard-working young familes to get on the property ladder.

The proposed change in the primary measure of inflation is in preparation to control it in the event of this change, either by smoothing it or even increasing it should that be considered desirable.

In short, deemed rents are back. ...

[PurpleGorilla]

Including housing costs in the inflation measure seems like a good idea to me.

Given real inflation has been +10% for the last 15 years.

[vetran]

Build more houses, have fewer people wanting them.

[northernladuk]

This was discussed on Moneybox on R4 last night so would be worth digging the podcast out. Interesting debate on how they want to use equivalent rental values as the measure but it's currently not being used as its not correct (can't remember the exact term they used) but they want to apply it next year. Could be a bit of a car crash if they don't get it right and quick.

[eek]

Given how insane council tax rates are due to being 30 years old (one I'm looking at is Council Tax F - on sale for £300,000) something needs to be done.

Not sure rates is the solution for this is what is being talked about...

[original PM]

So does this mean that if I have paid my mortgage and therefore own my house the government are going to start billing me for living in the house I own?

Or have I missed the point?

[PurpleGorilla]

Build more houses, have fewer people wanting them.

We do need more housing, but we also need to;

Move business and government out of London to spread the work and demand for housing around the UK.

Heavily tax multiple home ownership.

Stop foreigners buying our housing.

Introduce a 'leaving it empty' tax, and a quick way for government to acquire derelict properties.

[OwlHoot]

So does this mean that if I have paid my mortgage and therefore own my house the government are going to start billing me for living in the house I own?

Or have I missed the point?

No, you haven't missed the point. That's exactly what deemed rent means!

(and you'll still have to pay council tax.)

[eek]

No, you haven't missed the point. That's exactly what deemed rent means!

(and you'll still have to pay council tax.)

why do you think you will only pay deemed rent if the mortgage has been paid off?

[original PM]

No, you haven't missed the point. That's exactly what deemed rent means!

(and you'll still have to pay council tax.)

Over my cold dead body

The reason many people work hard and forgo luxuries to pay their mortgage off early is so that they can reduce any overheads they have for when they retire...

Also how is this going to work for those people who paid off their mortgage but have saved nothing else and so live off the state pension.

For anything other than a primary residence then yes it has mileage but you cannot penalise people for buying something.