"London's top-tier property market has suffered its steepest fall in more than four years amid growing fears that Chancellor Rachel Reeves will unveil a mansion tax in her first Budget."
"Reeves is understood to be considering a 1% annual levy on the portion of a property's value above £2 million, which would mean a £3 million home facing a yearly tax bill of around £10,000."
"It's a reminder of how property taxes often come with unintended consequences. If you tax so-called mansions, you will end up with fewer of them."
Prime London homes experienced a 4% price decline in the year to October, the steepest fall since February 2021. Prolonged uncertainty about potential taxes on luxury properties has reduced demand at the upper end of the market. Knight Frank estimates more than 150,000 properties across England and Wales could be affected by a proposed 1% annual levy on the portion of value above £2 million. A £3 million home would face about £10,000 per year under that levy. Another option under review is doubling the two highest council tax bands. The speculation has prompted paused purchases, price falls, and stronger demand for luxury rentals.
Read at Business Matters
Unable to calculate read time
Collection
[
|
...
]