r/Glasgow Tools

Title
Author	Divola
Comment	I mean I guess the way you'd sell it to homeowners is the following: While 64.4% of the UK population owned a home according to Eurostat in 2014, only 11% of UK adults owned more than 1 property in 2014-15 (meaning the share of the UK population who do so is necessarily less than 11%) according to the Resolution Foundation. Therefore, only 1 in 6 UK homeowners actually owns properties capable of generating income beyond the occasional renting of spare rooms on Airbnb or having to share a house with your tenants. Putting a limit on property ownership will, yes, decrease the valuation of small-scale homeowners' primary residences but will in turn allow them to get themselves 1-2 income-generating rental properties relatively cheaply, and without having to bid against large-scale portfolio investors that would be flush with cash. You could couple that with generous tax breaks on rental income and potential council tax discount - both things I'm really in favour of as a renter because whatever tax my landlord has to pay on his rental income gets passed onto me. Not sure how to resolve the large-scale eviction crisis that will surely ensue though. Another option is to declare homes below a certain valuation threshold (potentially dependent on location) "starter homes", and for example bar anyone with assets over £300k (or any group of buyers with joint assets over £300k) from submitting a bid on that property. I think that would have a similar effect and will be more painless.
Reddit Link	https://www.reddit.com/r/glasgow/comments/qdief2/anyone_else_completely_scunnered_by_the_property/hhqgxt2/
Created	Sat 23rd Oct 2021 1:18pm
Status	normal ()

I mean I guess the way you'd sell it to homeowners is the following:

While 64.4% of the UK population owned a home according to Eurostat in 2014, only 11% of UK adults owned more than 1 property in 2014-15 (meaning the share of the UK population who do so is necessarily *less* than 11%) according to the Resolution Foundation. Therefore, only 1 in 6 UK homeowners actually owns properties capable of generating income beyond the occasional renting of spare rooms on Airbnb or having to share a house with your tenants.

Putting a limit on property ownership will, yes, decrease the valuation of small-scale homeowners' primary residences but will in turn allow them to get themselves 1-2 income-generating rental properties relatively cheaply, and without having to bid against large-scale portfolio investors that would be flush with cash. You could couple that with generous tax breaks on rental income and potential council tax discount - both things I'm really in favour of as a renter because whatever tax my landlord has to pay on his rental income gets passed onto me.

Not sure how to resolve the large-scale eviction crisis that will surely ensue though.

Another option is to declare homes below a certain valuation threshold (potentially dependent on location) "starter homes", and for example bar anyone with assets over £300k (or any group of buyers with joint assets over £300k) from submitting a bid on that property. I think that would have a similar effect and will be more painless.