geteilt von: https://sh.itjust.works/post/38301389
To try to tackle this, the Welsh Labour government, alongside Plaid Cymru, introduced measures to curb second-home ownership. This included giving councils the ability to push council tax on second homes to 300% the usual rate. They also closed a loophole whereby second-home owners could register as a business in order to pay the much lower business rates.
Gwynedd council used these powers to hike council tax to 150% in April 2023. By the end of 2024, house prices had fallen by 12.4% as second-home owners tried to sell up. In Pembrokeshire, house prices fell by 8.9% after the council increased the council tax to 200% on second homes (though this was reduced to 150% recently).
Wow, look at that, turns out legislative action representing the people’s best interests has been proven infinitely more effective than empowering a dictator to execute everyone who initially refuses to redistribute.
Corporations hate this trick.
Its as if the solution to capitalism isnt whitewashing regimes that have done some of the worst crimes against humanity possibly but rather government regulations brought upon by democratic action.
Tankies hate this one weird trick!
I’ve been saying that for a while that secondary residences should lose all tax benefits and should also have additional tax penalties applied to them as long as there is a housing crisis.
Like a second house should cost you double, and if you get a third, then the second and third should cost you triple, and so on and so forth, so that having multiple homes would be a sign of wealth and not an investment practice.
You roll that out with a gradual phase in and you would solve the housing crisis in like 7 to 10 years.
The penalties should be higher for short term rental properties-if it’s listed on Airbnb or VRBO or similar, taxes double.
This should be tied to the multiple properties IMO. With home prices today you may have to AirBNB out the house and live in a shed in the yard for a few years just to afford the mortgage.
Agree, and I missed the fact that I didn’t make that clear. If Airbnb stayed what their initial marketing portrayed them to be (connecting people who had a spare room or mother-in-law suite that was unoccupied with people who wanted a more genuine local experience,) I’d have no problem with them.
It’s 150% of the old tax rate, not 150% of the value of the home, in case anyone’s wondering.
Why would it be 150% of the value of the home. In most places in America the property tax rate is around 1%. This would make it 2.5%. that’s still a lot for the average boomer with a second home possibly on a fixed income from pension and social security.
Boomer wants a second home he can put it in his grandkids name. Not like the kid is going to be able to afford his own place anyway till grampa dies and leaves everyone that boomer gold they got hoarded away
I have been advocating for triple the real estate taxes on ho.es that are not the primary residence for people. And that only people, not corporations, can own residential single family homes.
And look, it works.
Blackrock didn’t like that.
This seems to target home owners that either rent or just park wealth in a second home as asset and then also try to evade the taxes by register their second home as a business to pay a lower tax rate.
This doesn’t target landlord / asset management companies at all. Not sure if they are a thing in Wales.
Enforce it retroactively as well. Then use the taxes to pay for community improvement that was voted on by the community.
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But I want a small cabin by a lake at some point when I’m older. Has that dream been taken away from me, too?
As long as people can’t afford their first home, your cabin is not a priority. Plus, what’s the cost of that cabin? If it’s cheap, the tax increase won’t mean a huge increase in total numbers.
I want a small cabin by a lake
If it’s cheap, the tax increase won’t mean a huge increase
The most important bit of information for people to take away from this conversation.
If your second home is in a location people don’t want to live, i.e not a city and in a small dying rural town where everyone is moving away? People can’t afford homes where they need to live and work, a small cabin by the lake won’t impact that.
Not if you live there and this is only in Wales for now anyway.
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Tax aint the problem with property. Its that its valued too high because property is an asset of profit. Hope this helps with that issue, but it seems it just limits the trend instead of reversing it.
