No Need for High-End Buyers to Worry About Mansion Tax
Buyers who were worried by a potential mansion tax set to go ahead under the Labour party are expected to return to the higher-end property market after the recent election results.
The so-called “mansion tax” would’ve meant that those who owned properties worth more than £2 million or more would have been taxed 1%. Threatening to make homes near or above this value far more unattractive to potential buyers.
An recent analysis showed that those who owned homes worth more than £3 million would be paying an average of £16,636 per year.
During the first quarter of this year, the amount of ‘prime’ London sales fell by 33.1%. As buyers were anxious about the possibility of a tax.
Many celebrities weighed in on the argument. With Angelina Jolie saying that the tax may prevent her from purchasing a home in the UK.
The Conservative Party won an unexpected majority on Friday. Winning an unexpected majority which means Prime Minister David Cameron is returning to 10 Downing Street in a much stronger position than before.
Many British voters were surprised by the news, expecting a much closer result from the election. However others thought it inevitable that a country aiming to rebuild after the 2008 financial crisis would feel that it’s critical to keep the economic recovery going.
As exit poll results were released the pound surged close to 2% as investors were reassured that the country will not spend weeks of uncertainty as a new government forms.
While some wealthy overseas investors had been threatening to avoid the London Market, the outcome has shown that the UK is keeping its doors open for foreign investment.