Fears of a Labour tax raid ‘putting posh buyers off’ says agent
Fears of a Labour government being elected this year and a possible tax grab have become a bargaining chip for ultra-rich property buyers.
Beauchamp Estates, which specialises in London prime, warns that some buyers say they are worried about paying higher taxes under Labour.
A General Election is expected this year and with Labour well ahead in opinion polls, a victory for the party seems likely.
They believe that taxation will be heavy.”
Beauchamp director Rosy Khalastchy (main picture) says Labour is brought up in discussions about purchases as the party’s lead over the Conservatives remains so big, The Daily Telegraph reports.
Khalastchy says: “Usually they mention it when they want to buy something in an attempt to get a lower price. They believe that taxation will be heavy.”
Buyers of property worth more than £15 million say they are taking a big risk by buying before the election as they could soon be facing higher taxes, according to Ms Khalastchy.
Labour said it will close a tax loophole for second homeowners, and raise levies on foreign ownership.
Khalastchy also warns that rising crime levels in the UK are deterring some buyers.
Security is a big thing for international buyers.”
“Lately I’ve heard some people say they are finding the protests and the crime in the UK is more than it used to be and it is putting them off. Muggings, burglaries and just general crime,” she says.
“They don’t necessarily feel secure. Security is a big thing for international buyers. If people hear their friends say they have been mugged or there has been a big burglary somewhere, it brings it more home to them.”
However, the number of billionaires buying luxury homes in London last year rose by 10%, according to Beauchamp.