Mansion Tax would send the housing market into decline
Richard Carr has worked in the residential property sector for the majority of his 30 year working career. He helps achieve planning permissions for property developers to help them maximise their profits on their investments.
Richard believes the Labour party’s plans to introduce Mansion Tax will negatively affect both the rich and the poor. Pensioners could be left facing death taxes of almost half the value of their property, whilst owners of homes valued at over £2m would face a reported annual levy of £15,400.
Former Labour advisor warns against Mansion Tax
Speaking to the Guardian, Kate Barker – a former member of the monetary policy committee – warned that the tax could be “very disruptive” to the housing market.
She said: “The thing with introducing a Mansion Tax, particularly if it’s introduced at a reasonably high level, is that it is unexpected tax, and it would be capitalised into house prices today and therefore have quite a disruptive effect on the housing market.
“It would mean that houses over £2m would decline in value according to the discounted view people have of the tax paid on them.”
Labour using Mansion Tax to boost NHS package
The party is confident that the tax will raise over £1.2bn if introduced. To reach the target it has been estimated that the levy will need to raise an average of £11,000 per home. The money is being set aside for Labour’s ‘Time to Care’ fund, which is designed to fund another 40,000 health workers.
Mansion Tax would have negative effects
Richard Carr agrees with Kate Barker and believes that such a tax would be unworkable, with the arrangement leading to disputes between homeowners and the government concerning the valuation of individual properties.
Furthermore, Richard Carr has been reliably informed by an employee at Global Estate Agency that Ed Miliband has already inflicted massive damage to the £1.8-£2.5M housing market by his speech, and that Housing Stock at these levels has been paralysed!
Richard believes that Miliband just doesn’t understand the market. He has put an axe into a buoyant section of the market and has launched developers holding and currently building property in this price bracket, who employ people from all ends of the spectrum, into a massive black hole.