Budget 2025

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briantrumpet

briantrumpet

Squire
Owners of £2m 5-bedroom houses in Richmond complain that they don't live in mansions.

https://www.theguardian.com/uk-news...x-rise-budget-2025?CMP=Share_AndroidApp_Other

In an area where one-bed flats often sell for £300,000, and large, detached family homes regularly sell for upwards of £2m, “mansion” is seen as something of a misnomer. “It’s laughable,” said local homeowner Nick Miller, whose five-bedroom family home is on the market for £2m. “I don’t live in a mansion. It’s a 1930s house.”
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Dorset Boy

Dorset Boy

Active Member
briantrumpet said:
Owners of £2m 5-bedroom houses in Richmond complain that they don't live in mansions.

https://www.theguardian.com/uk-news...x-rise-budget-2025?CMP=Share_AndroidApp_Other
Click to expand...

Again it will be interesting to see how they are going to identify properties with values of £2+ million and £5+ million given there hasn't been a revaluation of properties for council tax since forever.
 
BoldonLad

BoldonLad

Old man on a bike. Not a member of a clique.
Location
South Tyneside
midlandsgrimpeur said:
Piece in the Guardian today looking at how the budget has affected different people. Couple with two kids, joint household income of £82k plus the wife has potential additional £50k in bonusses each year. They weren't complaining about the budget as such but did say “struggling to save but not just that we are also struggling to pay the bills and put food on the table.”

I don't want to cause a massive pile on but I do struggle with people who say earn above decent money and claim they are struggling to eat. Surely a joint income in excess of £80k with the possibility of more, means that if you are struggling to pay the bills it is because you have likely chosen to take on some fairly large costs such as an expensive house with a large mortgage?

I don't want to sound harsh but am I missing something here, or are people in this position usually struggling as a result of their taking on too much unnecessarily?
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It is simple, in general, the more you earn/have, the more you spend. As with everything, there are exceptions.
 
CXRAndy

CXRAndy

Shaman
briantrumpet said:
Owners of £2m 5-bedroom houses in Richmond complain that they don't live in mansions.

https://www.theguardian.com/uk-news...x-rise-budget-2025?CMP=Share_AndroidApp_Other
Click to expand...

Therewill be many who have lived in the same house for decades. They have seen property prices go through the roof. They have done nothing wrong except for the misfortune of where they live.

Pensioners, inherited property will be stung.

My daughter lived in London in a pokey flat, prices where £750k-1.25 million for flats. Crazy prices. A town house would be way above that
 
M

midlandsgrimpeur

Well-Known Member
BoldonLad said:
It is simple, in general, the more you earn/have, the more you spend. As with everything, there are exceptions.
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My assumption also. I guess it probably stems from having been bought up by a Dad that was, as we always like to tell him, a "massive tightwad), I have always kept outgoings well under earnings for a general safety net. It always surprises me when people who are comfortable, but not wealthy (IMO), put themselves in precarious financial positions by overspending.
 
M

midlandsgrimpeur

Well-Known Member
icowden

icowden

Shaman
midlandsgrimpeur said:
I don't want to cause a massive pile on but I do struggle with people who say earn above decent money and claim they are struggling to eat. Surely a joint income in excess of £80k with the possibility of more, means that if you are struggling to pay the bills it is because you have likely chosen to take on some fairly large costs such as an expensive house with a large mortgage?
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Essentially yes.

We have a very decent household income but are "struggling a bit" at the moment. But that's largely due to our choice to pay school fees and have a couple of fairly expensive holidays this year before eldest child went to Uni. So whilst I might have had a moan about VAT on school fees because it farked up all my careful financial planning and has screwed us over a fair bit, but I wouldn't have the gall to claim that we are struggling to eat, or unable to pay bills. I'm dependent on the continuation of two jobs, but if the worst came to the worst I could put the house on the market and buy somewhere cheaper.
 
M

midlandsgrimpeur

Well-Known Member
icowden said:
Essentially yes.

We have a very decent household income but are "struggling a bit" at the moment. But that's largely due to our choice to pay school fees and have a couple of fairly expensive holidays this year before eldest child went to Uni. So whilst I might have had a moan about VAT on school fees because it farked up all my careful financial planning and has screwed us over a fair bit, but I wouldn't have the gall to claim that we are struggling to eat, or unable to pay bills. I'm dependent on the continuation of two jobs, but if the worst came to the worst I could put the house on the market and buy somewhere cheaper.
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I appreciate you sharing that. I can certainly understand higher earners wanting to enjoy the benefits of their income and appreciate that sometimes people can cut it a bit fine. I guess it is just down to what we are each comfortable with and the level of acceptable risk, should our financial circumstances change.
 
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icowden

icowden

Shaman
midlandsgrimpeur said:
Yes, a 1930's house that happens to be worth millions! I do enjoy the faux outrage of people pretending they are not extremely fortunate. That is not a criticism of their right to own such a house, but let's not pretend that you are being disadvantaged in this scenario!
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A 5 bed detached in Penrhyn Road, East Sheen would have cost around £615,000 in 2002. That's worth £1,279,000 today. So yes, whilst they may be bleating that they haven't been able to sell at £2.5m and have had to reduce to £2m, that's still a gain of £721k over 23 years or £30k per year.

By moving not far at all, to leafy Surrey they could afford a 6 or 7 bed mansion.
 
Psamathe

Psamathe

Guru
Beebo said:
Why are they taxing savings? Seems another overly complicated issue. You can’t save more into an isa and anything outside the isa gets taxed higher?

“tax on some savers will go up
From April 2027, there will be a two percentage point increase to the basic, higher and additional rates of savings income tax, increasing them to 22%, 42% and 47% respectively.
Most people do not save enough to fall into paying income tax on their savings, but it does make the system more complicated.
There will also be increases in the rates of tax on dividends and property income.”
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Biggest impact will on pensioners. State pension pretty well at personal allowance. Fair number of pensioners suppliment the state pension with some savings interest and that will now attract higher income tax rates.
 
OP
OP
Beebo

Beebo

Guru
briantrumpet said:
Owners of £2m 5-bedroom houses in Richmond complain that they don't live in mansions.

https://www.theguardian.com/uk-news...x-rise-budget-2025?CMP=Share_AndroidApp_Other
Click to expand...

I’m amazed the bands are so low. In many parts of London and Home Counties the jump from £2-£5million is fairly small. There should be a £10-£20 million bracket.

And I do think this should be regionalised. With lower thresholds in different parts of UK. As the housing market is so heavily skewed to the South east.
 
dutchguylivingintheuk

dutchguylivingintheuk

Veteran
icowden said:
A 5 bed detached in Penrhyn Road, East Sheen would have cost around £615,000 in 2002. That's worth £1,279,000 today. So yes, whilst they may be bleating that they haven't been able to sell at £2.5m and have had to reduce to £2m, that's still a gain of £721k over 23 years or £30k per year.

By moving not far at all, to leafy Surrey they could afford a 6 or 7 bed mansion.
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Does not take away that it is an symptom tax not a solution. Because governments created the housing problems why would we expect them to solve it right?
 
Psamathe

Psamathe

Guru
Broken election manifesto both in spirit and the letter
...we will not increase National Insurance, the basic, higher, or additional rates of Income Tax, or VAT.
(from https://labour.org.uk/wp-content/uploads/2024/06/Labour-Party-manifesto-2024.pdf)
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National Insurance - freezing bands is increasing National Insurance
Income Tax - increase in savings rates in an increase in the rate of income tax.

So manifesto pledges just discarded when they actually didn't need to.
 
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