The ridiculously skewed impact of Labour's proposed mansion tax in four charts

A £2m-plus mansion tax would hit Kensington & Chelsea the hardest - quelle surprise.

by Rachel Savage
Last Updated: 26 Mar 2015

Labour leader Ed Miliband unveiled his much-trailed, Lib Dem-poached proposal for a so-called ‘mansion tax’ on homes worth more than £2m at his party’s conference in Manchester today and, unsurprisingly, estate agents are less-than-impressed.

Jackson Stops & Staff chair Nick Leeming said it represented a ‘Downton Abbey view of politics’. ‘This will affect people all over the country, not just in London where the market has been most buoyant,’ he fumed. ‘Many are asset-rich and income poor and the threat of a mansion tax would force these people to sell up.’

But while many cash-poor homeowners would certainly be hard hit by any mansion tax, the financial burden would fall heavily on (surprise surprise) London, and in particular – shock horror – the Royal Borough of Kensington & Chelsea, according to figures from property website Zoopla, which reckons that there are 22,454 homes worth more than £2m in the area. That's around a quarter of the total in London.

It’s yet more proof that the UK’s property market is still wildly unbalanced, particularly by foreign millions and billions poured into London piles. There has been evidence the capital's property has been cooling of late, as British buyers in particular are being put off by over optimistic price tags. But the majority of mega-bucks homes are still likely to stay concentrated in London for the realistic future.

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