Television property expert Kirstie Allsopp has issued a stark warning that Labour's proposed mansion tax will create a wave of homes being deliberately marketed at £1.9999 million as owners attempt to avoid the new property levy.
Performative Politics and Property Cliff Edges
The Location, Location, Location star described Chancellor Rachel Reeves' proposal as 'performative' and a 'nice chunk of meat' for Labour backbenchers during an appearance on Times Radio. Allsopp predicted significant behavioural changes in the property market, with numerous properties likely to be priced just below the £2 million threshold to avoid the surcharge.
Under the plans expected in tomorrow's Budget, more than 100,000 properties would face a surcharge worth approximately £4,500. The scheme would involve revaluing 2.4 million of the most valuable homes across council tax bands F, G and H, with those valued above £2 million facing the new levy.
Regional Disparities and Political Implications
Analysis reveals the changes would disproportionately affect homeowners in the South East, London and the East of England. Official data shows the South East has around 645,000 homes in the top three council tax bands, compared to just 43,000 in the North East.
The threshold means prominent Labour figures including Keir Starmer and Home Secretary David Lammy, who own north London properties worth between £1.5 million and £2 million, would likely escape the tax. However, Energy Secretary Ed Miliband and Attorney General Lord Hermer could face charges as they each own homes with estimated values close to £4 million.
Economic Consequences and Market Damage
Allsopp emphasised that the top end of the housing market represents a 'huge economic driver' and warned the tax would be 'incredibly damaging'. She criticised the 'constant chatter' about mansion or wealth taxes, stating it undermines confidence in what was traditionally considered the fiscally responsible decision to invest in property.
The property guru also highlighted that the Office for Budget Responsibility has acknowledged likely 'alterations in behaviour' and 'bunching up' of properties just below tax thresholds. She added that Budget speculation and its late timing have already caused genuine damage to both the housing market and wider economy.
Allsopp suggested the tax serves as a political tool for Reeves to demonstrate she's 'bashing the wealthy' and handing a victory to her backbenchers, particularly after being unable to address welfare spending concerns effectively.
