London accounts for 2 thirds (66%) properties price over £2 million, which means the measure would overwhelmingly goal folks within the capital if it goes forward, evaluation from Enness World exhibits.
It’s rumoured that Chancellor Rachel Reeves needs to introduce a 1% tax on properties price over £2 million within the upcoming Autumn Funds on November 26.
Islay Robinson, chief government of Enness World, stated: “Any proposal for an annual mansion tax dangers unfairly focusing on London owners and undermining one of many capital’s most necessary markets.
“Past equity, there’s additionally the query of market perform. The introduction of such a levy may distort pricing behaviour and deter each home and worldwide funding at a time when the UK must encourage capital inflows and restore housing confidence.
“At Enness World, we perceive the fragile stability between fiscal coverage and monetary stability. Whereas extra taxation could seem politically expedient, the real-world penalties can typically prolong nicely past the headline income figures – notably in markets as globally interconnected as London.”
Throughout England and Wales, 1,434 properties have offered for greater than £2 million to this point this yr, 0.4% of all properties offered. Some 940 of those transactions had been in London.
Throughout London as an entire, 8% of properties at present listed on the market boast an asking worth above £2m. Nevertheless, throughout the prime London market, this proportion climbs to 35%.
Homebuyers and sellers in Mayfair can be most uncovered, with 78% of all accessible properties at present listed above £2 million.
Knightsbridge follows intently at 61%, forward of Belgravia (58%), Chelsea (40%), Fitzrovia (39%), and Marylebone and Kensington (38%).
