The Mansion Tax – Lib Dems Release Their Plans
13th April 2015
One of the big talking points, especially in the London Property Market, has been around the possible introduction of a Mansion Tax on properties over £2m, as proposed by the Lib Dems and seized upon by Labour.
The concern over the possible detail of this has undoubtedly contributed to a slowdown in the market at this level, as the uncertainty has led to a bit of a wait and see approach from prospective buyers.
The main issue with this is of course the fact that there are a fair number of people who are not rich and certainly do not consider their homes as mansions, having bought them many years ago and seen the value rise dramatically.
Then of course their was the scaremongering around what the actual figures could be, with some eye watering amounts mentioned. Add together with changes in Stamp Duty and you have a reason for some to pause for thought.
Today however, the Lib Dems produced the figures they were considering and it is no real surprise that the plans have been scaled down.
As reported in The Telegraph, Nick Clegg stated, “It is less than originally mooted but because as we have worked up the idea, looked at what we think is reasonable and fair, we think this is a reasonable and fair way of doing it and shouldn’t scare the horses.”
So what are these figures?
Properties valued between £2m to £2.5m pay £2,000 per annum
Properties valued between £2.5m to £3m pay £3,500 per annum
Properties valued between £3m to £4m pay £5,000 per annum
Properties valued between £4m to £5m pay £9,000 per annum
So it certainly is not as eye watering as many expected.
There is still much detail to be heard from the Labour party over their exact plans, but it would be surprising if it was significantly different.
Whether you agree with all of this or not will have much to do with your politics, but does this mean that those looking for higher end properties can relax a little?
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Andrew Montlake, Director and Spokesperson for Coreco, gives his honest and forthright views on the mortgage market, economy and all things property related. Monty was voted "Mortgage Personality of the year 2008", "Best Press Spokesperson" in 2011 and is the current holder of the British Mortgage Awards “Best Marketeer” title. Expect expert analysis, delivered in a down to earth style with a side helping of exuberance.