Burst the housing bubble – stop residential housing being just another commodity

As long as enormous profits can be generated through the sale of residential housing it will be viewed as a capital commodity like any other.

Simply impose a punitive level of capital gains tax (say 85%) on any property that isn’t a persons primary residence. The exception being a property rented out at an affordable rent (not affordable linked to market rental prices) .

I also extend this policy to any primary residence sold within 3 years of purchase.

By targeting capital gains you don’t prevent people from moving you simply prevent profiteering from this.

This instantly stops residential property being seen purely a a capital commodity but doesn’t prevent those who want to rent out at a rate above an affordable threshold and profit from income rather than capital gain, and by so doing means that empty housing will be a liability.

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