Mansion tax fears chill London property scene

Labour is facing criticism as fears of a mansion tax have frozen London’s property market. Reports suggest that the Chancellor Rachel Reeves may impose a 1% levy on property values above £2m, prompting some owners to slash asking prices or withdraw from the market entirely. Estate agents say calls from worried clients have surged, while agreed home sales fell 3% in September, the first annual decline in two years, with high-value areas hit hardest. Property shares also slipped, with Vistry down 1.9% and Barratt Redrow 1.4%. Becky Fatemi of Sotheby’s said clients reacted with "disgust… perceiving no incentive at all to be here," while some told her, "whatever price I need to sell at, just reduce it so I can get it away." Will Watson, of The Buying Solution, added: "Until we know really what the Government is going to do, a lot of people will just sit tight." Liberal Democrats have described the plan as a short-term "tax grab" without meaningful reform. Meanwhile, the Housing Secretary Steve Reed has repeatedly declined to confirm or rule out the tax ahead of the November Budget.

The Daily Telegraph   Daily Mail