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We never lived in our own house in the Leyland/Preston area (all rentals). In Kenilworth, our semi-detached bungalow was worth about 3800 pounds and our local taxes (called "rates" in those days and included unlimited water consumption) were around 100 pounds a year. Later, when we lived in Coven, a small village north of Wolverhampton, the value of the house was nearer to 4500 pounds and the local taxes were 135 pounds a year.
Given that a 2-bedroom semi-detached Wimpey bungalow like we had in Kenilworth is now a 100,000 pound house, even in Leyland, one would expect the Council taxes (rates) to be about 2650 pounds a year, working on the proportional values. How does this match what you're being billed?
In Anacortes, we pay $2000 on a $200,000 house, but this doesn't include city services for which we're billed separately (trash collection, recycle bin pick-up, garden waste collection, street lights, and special levies for schools and library functions) and we pay for water and sewer on a meter. These amount to about $90 a month. The school levy covers extra things for the local schools that aren't covered by state funding.
On the whole, I don't think we do too badly.
Maybe your local taxes are a bit exorbitant compared to 20 years ago, but not too far out of line in comparison to house values. It sure doesn't help if your income hasn't increased in proportion to the increase in your home's value.
We have another advantage here in that our mortgages are fixed interest rate for the duration of the loan. We recently refinanced our home at 4.8 percent for 30 years, and we were not barred from doing so by the fact that I was 62 at the time we did the re-fi. The mortgage company is covered by the fact that they get the house if we default (i.e., if I die) and the prospect is that it will have appreciated.
Frank Damp
Frank Damp (wife Eileen, nee Nixon)
Leyland resident 1941-1965, emigrated to the US in 1968,
retired to Anacortes, Washington State, USA in 1999.
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I don't think we are getting good value for money. House prices bear little relationship to inflation, that is the true measure to use as a comparison. When an 83 years old pensioner on basic pension of £320 a month can't afford to pay the 19.8% increase and is prepared to go to gaol in protest, there is something badly wrong with this tax. Well done with the mortgage Frank, I recently also took out a new one though only taking me up to 70 years of age, by which time I will either be scattered somewhere in the Lakes or living in something smaller
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I've done a calculation. In 33 years my rates and water rates have increased approximately 40 times, while my salary has increased 20 fold. If these councillors who set the tax had to work in industry, there would be no industry capable of sustaining these increases.
