Ed Miliband has come under attack from yet another unexpected quarter. Appearing on ITV’s The Agenda, the opposition Labour leader appeared to be taken by surprise when singer Myleene Klass criticised his plans for a tax on properties worth more than £2m.
As Miliband sought to defend the so-called mansion tax as a principled way of raising extra funding for the NHS, Klass said the levy would hit “little grannies” living in modest homes in London rather than the super-rich Miliband claimed to be targeting.
Miliband, who initially appeared to be taken aback by the force of her onslaught, fought back. “I say bring on this debate. I think it is a principled view that those with the broadest shoulders should pay the biggest burden. I think that is a decent, right principle and that is not happening under this government.”
The threat of a mansion tax after next May’s general election is putting off potential buyers of £2m-plus homes in London causing the ultra-luxuary property market to subside dramatically. However this has caused an increase of the ‘mid-market brand’ of homes costing between £1m and £2m in areas such as Victoria and Battersea in South-West London.
We have asked Jamie Lester, Head of Haus Properties how he thinks the apposed mansion tax has effected the London property market,
“Property marketed at around the £2.1m-£2.2m mark has been hard to sell with little interest, so we have advised motivated sellers (who need to move within the next 3-6 months) to market their property at just below £2m, and in turn, these have been purchased swiftly. For example, we have recently marketed a four-bedroom family home in Fulham for £1,999,995 and it went under offer within three weeks.
“We have not advised nor been tempted to market property that’s worth £2.1m-£2.2m at a higher price of £2.5m, for example, as I think such a tactic would lead to the property sticking on the market, which ultimately, doesn’t help anyone.”
What we have to say, "The Election shouldn't change anything. Lets keep the Status Quo and keep the market moving."
Read the full The Guardian article here.