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Mansion Tax Could Wipe 5Pc Off The Value Of High-End London Homes

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Mansion tax could wipe an average of 5pc off homes worth more than £2m should Labour win the next general election and make theproposals a reality.

The plans touted by the shadow chancellor, Ed Balls, could mean a 10pc drop for properties valued at £10m or more, and an 8pc fall for homes valued above £5m according to a new report from Savills.

The property group has also estimated a 6pc decline for those homes worth more than £3m.

People who own homes with a price tag above the £2m threshold could see their property value fall 4pc following Mr Balls' announcement that they will face a monthly levy of £250, a sum which gets progressively larger for more expensive properties.

Even those homes below the cut off, between £1m and £2m, will feel the effect of this proposed policy, championed by Ed Miliband, and could drop 2pc in 2015.

Bring it on!! :)


http://www.telegraph.co.uk/finance/personalfinance/houseprices/11213934/Mansion-tax-could-wipe-5pc-off-the-value-of-high-end-London-homes.html?WT.mc_id=e_3664793&WT.tsrc=email&etype=frontpage&utm_source=email&utm_medium=Edi_FAM_New_2014_11_7&utm_campaign=3664793

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A full 5%, thatd be like 5 months of government infused growth.

Love the comments good to see the fools on the DT forum coming up with the usual jealousy line and supporting the 0.01% who own such properties.

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Oh yeah, I remember the introduction of the mansion tax.....

Grasping at straws springs to mind. It's the f**king mad prices and the speculative bubble popping that's causing the drops.

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A full 5%, thatd be like 5 months of government infused growth.

Love the comments good to see the fools on the DT forum coming up with the usual jealousy line and supporting the 0.01% who own such properties.

Including Dan Hodges, Torygraph columnist who was gifted a £2m house (his mum is Glenda Jackson)

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Well if you getting sub 3% yield on that property its now 1/3 down if that is used to BTL finance even a portion of the building that is not good.

or imagine your BTL lair loan a 1.5 million flat and this comes in after the recent rises? Would that cause the bank to revisit the loan?

if you inherit or are given a home over (or that has become 2m+) and this charge comes in and your on under 100k your going to think about selling also.

My problem the same as many others is the prices locally do not marry up with jobs available ergo the money has to come from some other place.

For Norwich its London and Cambridge > Cambridge its London > London its gentrification from central > central London its foreign speculators.

Rather than a housing ladder the hot money flows down so anything that reduces the top of the food chain is going to ripple out.

For me in the unlikely event this get implemented anything up to a 20/30% should come off affected properties.

The ripple down should cause a crash which may be amplified by deflation/interest rises depending on how things go.

A labour UKIP coalition would be interesting Farage was on TV suggesting a intervention on high value London properties and London hates UKIP mansion tax + EU referendum?

Edited by Fromage Frais

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How can anyone think that UKIP can possibly be involved in any coalition in 2015, the best result they can possibly hope for is 3 or 4 seats.

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