Due to the uncertainty surrounding the outcome of the General Election it is considered that some may hold back buying properties at the top end of the capital’s luxury property market over the next few months.
Experts believe a total of 86,000 London homeowners will be hit by Labour’s mansion tax, according to a new estimate of the number of properties worth at least £2 million.
The analysis suggests the levy would be paid by just under 110,000 households across the UK — of which almost 80 per cent are in London. The forecast is higher than previous estimates which put the number between 70,000 and 80,000.
The shadow chancellor, Ed Balls, has said there would be four levels of mansion tax, with the lowest band for homes worth between £2m and £5m. At the top end, billionaires splashing out £100m or more for a proper mansion – not just a Mayfair pad – will pay the most.
Interestingly, last month it was reported that many home-owners were considering selling their properties due to the same threat – i.e as they did not want to be subject to the tax. Thus the ‘knock-on’ effect the introduction of such a tax could have on the property market generally could be major especially if many are reluctant to buy and others are wishing to sell.
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