An estate agents has claimed that Bristol homes won’t be as badly affected as anticipated by Rachel Reeves’ ‘Mansion Tax’.
Marcus Cryer, a partner at Clifton-based estate agents Hydes of Bristol, said that the build-up to the budget was more harmful to the housing market than the budget itself.
“Everyone sort of sat on their hands a bit really, and valuable properties didn’t really hit the market,” he said.
“That part of the market stayed quite static because of all the rumours that were spread about potential capital gains tax on individual homes, and all the different variants of the mansion tax that were proposed.
“Interestingly, although £2,500 is a lot of money, if you’re in a £2 million house, it’s more affordable than people were worried it was going to be.”
This comes after the Chancellor outlined the unprecedented tax in the Autumn budget she delivered on Wednesday.
In the weeks leading up to the release of the budget, many people had speculated about the so-called ‘Mansion Tax’ and how high the surcharge might be.
The High Value Property Surcharge is outlined as £2,500 per year for houses valued at between £2m and £2.5m.
Properties valued at over £5m will pay £7,500 per annum, forming the highest band.
There is, however, the idea that the High Value Property Surcharge is unfair. Marcus’ co-partner Henry Thornhill thought that Rachel Reeves went after an ‘easy target’.
“They could probably find the same sort of money elsewhere. The people who live in these sorts of houses to my mind, in my own personal view, they pay a lot of taxes already. They probably pay their fair share already.”
Marcus predicted that after this initial hit to the market leading up to the budget, the market for higher value properties will bounce back in the new year.
“I know £2500 is a lot of money, but there’ll be a relief it’s only £2500. I think we might see more action in the Spring. I don’t think it’ll have a big, big effect. I think it just slowed us down whilst everyone was waiting for the budget.”
However, the taxes’ real impact will be determined when it comes into full effect in 2028.
