Been thinking about this today. People already pay CGT on 2nd homes but given that housing is being used as an investment vehicle by virtually everyone in the UK, does it make sense to apply it to single homeowners too?
Would have to ignore the current govt's pledge to not raise taxes but with national debt at over 100% of GDP and us spending over 100 billion pounds a year in interest alone... not sure that is sustainable.
Thinking it through, house prices would fall since they would immediately be a less desirable commodity. Although they wouldn't plummet because houses still have intrinsic value and the supply of houses being sold would begin to dry up as people are dissuaded from selling.
The rental housing supply would increase in terms of properties since it would be more profitable to let them out than sell them. An increase in supply would reduce the cost of rent. It would need to come in with an increase in renter protection laws. Focusing on long term rented properties as family homes works well for other countries like Germany.
At the moment we've got a situation where people buy the most expensive house they can possibly afford because it has the best return of any investment by being exempt from CTG. In theory, people might buy more modest homes if they are buying and potentially could put more money into stocks/indexes which would stimulate the wider economy.
Anyway, this was more of a showerthought than anything else. What do you think?
I'm sure this is common knowledge but Lyon's worker uprising in the 19th century is the origin of the word 'sabotage'. The workers were protesting against semi-automated loom weaving machines that used punch cards like primitive computers. When the managers weren't looking the workers would through their shoes (which were called "sabos") into the mechanism to break it.
Just got back from a holiday in Lyon. Super interesting place! I got the impression that the quality of life was good for the locals. Met a bunch of friendly Lyonnaise at a music festival and they were extremely generous sharing their party supplies.
Edit: I believe Lyon workers movement were also originators of slogans like "workers of the world unite"