The Plain Index

Author: The Plain Index

  • Why Do New Builds Often Lose Value After Purchase?

    Short answer:

    Because the price of a new build includes a developer premium that disappears once the property is no longer new.

    This is structural, not a mistake.

    What the “new build premium” is

    When you buy a new build, you are not just buying the property.

    You are also paying for:

    • Brand-new condition
    • Choice of finishes
    • Incentives bundled into the price
    • Marketing and sales costs
    • Developer profit

    These costs are embedded in the initial sale price.

    Once you own the property, that premium is gone.

    What happens the moment it’s resold

    As soon as the property is no longer classed as new:

    • It is valued against comparable resale homes, not new builds
    • Incentives are stripped out
    • Buyers become more price-sensitive

    The market resets the price to what similar second-hand homes are worth.

    This often looks like a loss, even if the wider market is stable.

    Why incentives hide the true price

    Developers often offer incentives such as:

    • Stamp duty contributions
    • Free upgrades
    • Cashback or legal fee support

    These benefits are rarely reflected in official sale prices.

    Mortgage valuations are based on headline price, not incentives, which can exaggerate the apparent value at purchase.

    The role of mortgage valuations

    Lenders are cautious with new builds.

    They often:

    • Apply stricter loan-to-value limits
    • Use conservative comparables
    • Assume short-term depreciation

    This affects both initial borrowing and resale expectations.

    Why this doesn’t happen to every new build

    Value drops are more likely when:

    • Supply is high in the local area
    • Developments are large and uniform
    • Incentives are aggressive
    • The wider market is flat

    Smaller developments in constrained areas can behave differently.

    Why people are surprised by this

    New builds are marketed like consumer products:

    • Clean
    • Modern
    • “Better than old”

    But property markets price comparables, not condition.

    Once the marketing layer is removed, pricing becomes mechanical.

    The practical takeaway

    New builds are often best thought of as:

    • A lifestyle choice
    • A convenience purchase
    • A long-term hold

    They are less suited to short-term resale expectations.

    Understanding this helps align price, timing, and expectations.

    One simple next step

    If you’re considering a new build:

    Compare the price to similar resale homes nearby — not to other new builds.

    That comparison reveals the embedded premium.

    New builds are priced for first ownership, not immediate resale.

  • Can You Refuse a Smart Meter?

    Short answer:

    Yes. In most cases, you are not legally required to have a smart meter installed.

    Energy suppliers can encourage installation, but they generally cannot force it.

    What the law actually says

    There is no law in the UK that requires households to accept a smart meter.

    Smart meters are part of a national rollout, but that rollout is based on:

    • Targets for suppliers
    • Incentives and encouragement
    • Not compulsory installation for customers

    This is why refusal is still possible.

    Why suppliers push so hard

    Energy suppliers are under pressure to meet rollout targets.

    Smart meters help them:

    • Reduce manual meter readings
    • Lower operating costs
    • Improve billing accuracy
    • Manage energy demand more efficiently

    That’s why communications can feel persistent or urgent, even when installation is optional.

    When refusal is usually accepted

    In most standard situations, you can simply say no.

    This includes:

    • Owner-occupied homes
    • Rental properties (with tenant consent issues aside)
    • Customers paying by direct debit

    Suppliers may continue to ask, but refusal alone does not breach your contract.

    Situations where pressure may increase

    There are a few scenarios where suppliers may apply more pressure:

    Prepayment meters

    If you are on, or moved to, a prepayment meter, suppliers often argue that smart meters are safer and more practical.

    Even then, installation is usually policy-driven, not legally forced, but resistance can become more difficult.

    Meter replacement or faults

    If an old meter fails or becomes unsafe, it may need replacing.

    In these cases:

    • A replacement meter is required
    • A smart meter may be offered as the default

    You can usually request a non-smart alternative, but availability can vary.

    Why people choose to refuse

    Common reasons include:

    • Privacy concerns
    • Worries about reliability or signal issues
    • Preference for manual control
    • Past problems with billing after installation

    None of these reasons are illegitimate.

    You are not required to justify your decision.

    What refusal does 

    not

     mean

    Refusing a smart meter does not automatically mean:

    • Higher tariffs
    • Breach of contract
    • Loss of supply

    However, some newer tariffs or features may only be available with smart meters.

    That is a commercial choice, not a legal penalty.

    The practical takeaway

    Smart meters are encouraged, not compulsory.

    You can usually refuse installation, but:

    • Expect repeated requests
    • Expect less flexibility if your existing meter fails
    • Be aware that some tariffs may be unavailable

    Understanding this distinction makes supplier conversations calmer and more controlled.

    One simple next step

    If you’re unsure where you stand:

    Check your supplier’s smart meter policy and your current meter type.

    That tells you whether refusal is straightforward or likely to be contested.

    The rollout is national.

    The decision is still individual.

  • What Does “Reasonable Wear and Tear” Actually Mean?

    Short answer:

    It means the normal, gradual deterioration of a property caused by everyday use over time — not damage, neglect, or misuse.

    The term is deliberately flexible.

    That’s why it causes disputes.

    Why the phrase is so unclear

    “Reasonable wear and tear” is not precisely defined in law.

    Instead, it is assessed case by case, based on what a reasonable person would expect after normal use.

    This allows fairness across different situations, but it also creates uncertainty.

    What counts as reasonable wear and tear

    Examples usually include:

    • Faded paint or wallpaper
    • Light scuffs on walls
    • Worn carpet in high-traffic areas
    • Loose door handles over time
    • Minor marks on worktops

    These are expected outcomes of someone living in a property.

    They are not the tenant’s financial responsibility.

    What does 

    not

     count as wear and tear

    These are usually classed as damage:

    • Large stains or burns on carpets
    • Broken fixtures or fittings
    • Holes in walls beyond normal fixings
    • Missing items
    • Damage caused by pets where this was not permitted

    Damage is about cause, not appearance.

    The factors that matter most

    When a dispute is assessed, four things are usually considered together:

    1. Length of tenancy

    The longer someone lives in a property, the more wear is expected.

    2. Quality and age of items

    Cheap or old furnishings are expected to wear out faster than new, high-quality ones.

    3. Number and type of occupants

    A family will reasonably cause more wear than a single occupant.

    4. Evidence at check-in and check-out

    Inventory reports and photographs matter more than opinions.

    Disputes are resolved on documentation, not intent.

    Why this often leads to disagreement

    Landlords may expect a property to be returned in near-original condition.

    Tenants may assume all deterioration is acceptable.

    The system sits between these expectations.

    The phrase exists to balance:

    • Fair use
    • Asset protection
    • Real-world living

    How disputes are actually resolved

    Most disputes are not decided in court.

    They are handled through:

    • Deposit protection schemes
    • Independent adjudicators
    • Written evidence and photographs

    The process is procedural, not personal.

    The practical takeaway

    “Reasonable wear and tear” is judged on:

    • Time
    • Use
    • Quality
    • Evidence

    Not on whether the property looks perfect.

    Understanding this helps both tenants and landlords set realistic expectations.

    One simple next step

    If you’re renting or letting a property:

    Check the inventory report and photos from the start of the tenancy.

    That single document carries the most weight if a dispute arises.

    The rule exists to allow homes to be lived in, not preserved.

  • Why Is Council Tax So High for This House?

    Short answer:

    Because council tax is based on 1991 property values, adjusted by local council budgets — not on what your home is worth today or how much you personally use local services.

    The number often feels arbitrary, but it isn’t random.

    What council tax is actually based on

    Every home in England and Wales is placed into a valuation band.

    That band is based on:

    • What the property would have been worth in 1991
    • Not its current market value
    • Not the price you paid

    Each band has a fixed range.

    Once a property is placed in a band, it usually stays there.

    Why 1991 is still used

    Council tax replaced the poll tax in the early 1990s.

    Rather than revalue every property regularly — which is politically and administratively difficult — the original valuations were kept and adjusted using multipliers.

    As a result:

    • Relative differences matter more than absolute prices
    • Two houses worth very different amounts today may still sit in the same band

    This is why council tax often feels disconnected from reality.

    Why similar houses can pay different amounts

    Even if two homes look similar, council tax can differ because of:

    • Small differences in estimated 1991 value
    • Extensions or changes made after that date
    • Boundary changes between council areas

    Once a band is set, it tends to persist unless formally challenged.

    The role of the local council

    The band sets the framework.

    The council sets the bill.

    Each local authority:

    • Sets its annual budget
    • Applies a multiplier to each band
    • Includes charges for services like police and fire authorities

    This means:

    • The same band costs different amounts in different areas
    • Increases reflect local funding needs as well as national policy

    Why it feels high even if services feel limited

    Council tax does not work like a usage fee.

    It funds:

    • Statutory services
    • Long-term obligations
    • Social care
    • Legacy costs from previous years

    You are paying into a shared system, not buying a menu of services.

    That disconnect between payment and visible benefit is a major source of frustration.

    Can the band be wrong?

    Yes, but changes are uncommon.

    A band may be incorrect if:

    • Comparable nearby properties are clearly in a lower band
    • The original valuation was inconsistent
    • The property was wrongly assessed at the start

    Challenges are possible, but they must be evidence-based and are not always successful.

    The practical takeaway

    Council tax feels high because:

    • It is anchored to outdated valuations
    • It varies by local budget, not personal circumstance
    • It funds obligations you may not directly see

    Understanding this doesn’t reduce the bill, but it explains why it often feels unfair or opaque.

    One simple next step

    If your bill seems unusually high:

    Check your band against similar nearby properties.

    That’s the only meaningful first step before considering a formal challenge.

    Council tax is a blunt instrument.

    Its stability comes at the cost of precision.

  • What Actually Happens If You Miss a Self-Assessment Deadline?

    Short answer:

    You are automatically fined, even if you owe no tax — but the consequences escalate gradually, not all at once.

    Missing the deadline is common.

    The system is designed to penalise lateness mechanically, not emotionally.

    The first thing that happens

    If you miss the 31 January filing deadline for an online Self-Assessment return:

    • You are issued an automatic £100 penalty
    • This applies even if:
      • You owe no tax
      • You are due a refund
      • The delay is only one day

    There is no warning stage.

    The penalty is triggered automatically.

    What happens if you’re a bit late

    If the return is still not filed after the first penalty:

    After 3 months

    • Daily penalties begin
    • £10 per day
    • Capped at £900

    These accrue automatically until the return is submitted or the cap is reached.

    After 6 months

    • An additional penalty is charged
    • This is usually:
      • £300 or
      • 5% of the tax due (whichever is higher)

    Even if HMRC has estimated your tax, the penalty still applies.

    After 12 months

    • Further penalties may be added
    • These increase if HMRC believes the delay was deliberate

    At this point, the situation becomes more serious, but it is still procedural rather than personal.

    What about late payment of tax?

    Filing late and paying late are treated separately.

    If you file on time but pay late:

    • Interest accrues on the unpaid tax
    • Late payment penalties may apply later

    If you file late and pay late:

    • Penalties stack
    • Interest continues to accrue

    The system tracks each failure independently.

    Why this system exists

    Self-Assessment relies on:

    • Predictable deadlines
    • Automated processing
    • Cash-flow forecasting for government finances

    Automatic penalties reduce the need for manual enforcement and keep the system scalable.

    The system prioritises compliance, not flexibility.

    What the system does 

    not

     assume

    Missing a deadline does not automatically mean:

    • Fraud
    • Evasion
    • Deliberate avoidance

    Those require separate evidence.

    Most late filers are treated as routine cases and never interact with a human investigator.

    Can penalties be appealed?

    Yes, but only under specific conditions.

    HMRC may cancel penalties if you had a reasonable excuse, such as:

    • Serious illness
    • Bereavement close to the deadline
    • System failures outside your control

    Forgetting, misunderstanding, or being busy are usually not accepted.

    Appeals are assessed against defined criteria, not discretion.

    The practical takeaway

    Missing the deadline triggers penalties automatically, but the system gives multiple opportunities to stop escalation.

    Filing late is usually worse than filing imperfectly.

    Submitting the return — even with estimates — stops daily penalties from increasing.

    One simple next step

    If you’ve missed or may miss the deadline:

    File the return as soon as possible, even if payment comes later.

    That single action limits penalties and stops further escalation.

    The system responds to timing, not intent.

    Speed matters more than explanations.

  • Why Does Working More Sometimes Leave You With Less Money?

    Short answer:

    Because parts of the UK tax and benefits system are withdrawn as your income rises, creating periods where extra earnings are partly or fully cancelled out.

    This is real.

    It’s not a mistake in your payslip.

    What’s actually happening

    When you earn more, three things can happen at the same time:

    1. You pay more tax
    2. You pay more National Insurance
    3. You lose access to certain benefits or allowances

    Each of these is calculated separately.

    Together, they can create a situation where a pay rise produces little or no increase in take-home pay.

    In some narrow income ranges, take-home pay can even fall.

    Why this feels wrong

    Most people assume income works like a straight line:

    More work → more money

    But the UK system is not linear.

    It is made up of overlapping thresholds, each added at different times for different reasons.

    The result is a step-based system, not a smooth one.

    That’s why two people earning slightly different amounts can take home almost the same pay.

    The main mechanisms that cause this

    1. Income tax bands

    As your income crosses certain thresholds, more of it is taxed at a higher rate.

    That part is widely understood.

    2. National Insurance thresholds

    National Insurance is calculated separately from income tax and has its own bands and rates.

    This adds another layer of withdrawal as earnings rise.

    3. Benefit and allowance withdrawal

    Some benefits and allowances are reduced or removed as income increases, including:

    • Child Benefit
    • Universal Credit
    • Tax-free allowances in specific ranges

    These withdrawals act like extra tax, even though they are not labelled as such.

    The hidden effect: high marginal rates

    The key concept here is the marginal rate — how much of each extra pound you keep.

    In some income ranges, the combined effect of tax, National Insurance, and benefit withdrawal means you may keep only a small fraction of additional earnings.

    This is why people sometimes say:

    “There’s no point doing the extra hours.”

    They are reacting to the marginal rate, not the headline salary.

    Why the system is built this way

    The system wasn’t designed as a single structure.

    It grew in layers:

    • Taxes to raise revenue
    • Benefits to support lower incomes
    • Tapering rules to control costs

    Each part made sense on its own.

    The complexity comes from interaction, not intent.

    What this means in practice

    Working more almost always increases gross income.

    It does not always meaningfully increase net income.

    Whether extra work is worth it depends on:

    • Where your income sits relative to thresholds
    • Which benefits or allowances apply to you
    • How much flexibility you have over hours or timing

    This is why two people can make very different decisions with the same pay offer.

    One simple next step

    If you’re considering extra hours, overtime, or a pay rise:

    Check your effective marginal rate, not just the headline salary.

    That tells you how much of the extra money you will actually keep.

    The system is not punishing effort.

    It is balancing multiple goals at once — imperfectly.

    Understanding that makes decisions clearer, even if the outcome stays the same.

  • Do You Actually Own a Leasehold Flat?

    Short answer:

    Not in the way most people think.

    If your flat is leasehold, you own the right to live in the property for a fixed number of years, not the land it sits on and not the building itself.

    What leasehold ownership really means

    A leasehold flat is a time-limited property right.

    When you buy it, you are purchasing:

    • The right to occupy the flat
    • For a set number of years (often 99, 125, or 999)
    • Under the conditions written into the lease

    You do not own:

    • The land
    • The structure of the building
    • The common areas (stairs, roof, external walls)

    Those are usually owned by the freeholder.

    Why this feels confusing

    Estate agents often say things like:

    “You own the flat, just not the freehold.”

    That phrasing is misleading.

    A more accurate description is:

    You own a long-term rental right that can be bought and sold.

    It feels like ownership because:

    • You paid a large upfront sum
    • You can sell the flat
    • You may live there indefinitely if the lease is long

    But legally, it is still a declining asset unless the lease is extended.

    Why leasehold exists at all

    Leasehold flats exist for one main reason: shared buildings need central control.

    Someone has to:

    • Own the structure
    • Arrange insurance
    • Maintain the roof and external walls
    • Enforce rules consistently

    The lease system was created to make that manageable at scale.

    Over time, additional charges and obligations were added:

    • Ground rent
    • Service charges
    • Permissions and fees

    That layering is why the system now feels opaque.

    What actually matters in practice

    If you own a leasehold flat, three things determine its real value and risk:

    1. Remaining lease length

    As the lease shortens, the flat becomes harder to sell and mortgage.

    Below 80 years, extension costs rise sharply.

    2. The lease terms

    The lease controls:

    • What you can change
    • What fees can be charged
    • How costs are split
    • What permissions are required

    Two flats in the same building can have very different leases.

    3. The freeholder or managing agent

    How the building is run affects:

    • Service charge levels
    • Responsiveness
    • Dispute risk
    • Overall stress

    This has nothing to do with the flat itself, but it affects daily life.

    Are leasehold flats being phased out?

    For new houses, largely yes.

    For flats, no — not yet.

    While reforms are ongoing, most flats in England and Wales are still sold as leasehold, and that is unlikely to change quickly.

    The practical takeaway

    If you own a leasehold flat, you should think of it as:

    A long-term, sellable right to occupy a home — governed by a contract — rather than permanent ownership of property.

    That framing makes decisions clearer and reduces surprises later.

    One simple next step

    If you own or are buying a leasehold flat:

    Check the remaining lease length.

    That single number tells you more than the asking price.

    Understanding how the system works does not mean you have to like it.

    It just means you can navigate it with fewer surprises.