Property presenter Kirstie Allsopp has accused Labour of a massive own goal after new property tax hikes triggered a 25 per cent house price slump in London.
The television star highlighted a report in the Mail showing that prime residential properties in parts of the capital have seen close to 300,000 pounds wiped off their average value over the past year.
The collapse in prices follows Labour's decision to raise stamp duty on more expensive homes, impose a surcharge on second homes, and introduce a so-called mansion tax of up to 7,500 pounds a year on properties worth more than 2 million pounds.
Responding to the report on X, the social media platform formerly called Twitter, Allsopp posted: "Massive own goal, they were warned, multiple times, but they knew better."
Allsopp is an English broadcaster best known for co-hosting the Channel 4 property show Location, Location, Location. Her comments come amid mounting criticism of government property tax measures from real estate professionals.
Fears of Fresh Tax Hikes in October Budget
Industry observers fear worse is to come as senior Labour figures Andy Burnham and John Healey plot a fresh avalanche of tax hikes in the upcoming October Budget.
The proposed measures are intended to fund Labour's spending plans and an expansion of the state. Tax increases could target middle-class homes as well as wealthy individuals through capital gains tax and inheritance tax.
Burnham serves as the Mayor of Greater Manchester, while Healey is a senior Labour Cabinet minister. Capital gains tax is levied on profits from selling assets, while inheritance tax applies to estates transferred after death.
London Boroughs Suffer Severe Price Drops
The Mail report revealed that the City of Westminster has been the worst-hit borough in London, where house prices fell 25 per cent to an average of 854,198 pounds. That decline wiped 290,624 pounds off property values in high-end areas including Mayfair, Belgravia, and Marylebone.
In Kensington and Chelsea, average prices fell by over 215,000 pounds, representing a drop of nearly 15 per cent from approaching 1.5 million pounds to around 1.25 million pounds over the past 12 months.
Other areas of the capital also suffered heavy losses. Average house prices in the City of London dropped 20 per cent, while values in Tower Hamlets and Hammersmith and Fulham both fell by 13 per cent.
Westminster and Kensington and Chelsea contain some of the UK's most expensive residential addresses, where property values are heavily influenced by international investment and top-rate tax bands.
UK Housing Market Shows Sharp Regional Divide
The downturn in the capital contrasts with national figures published this week by the Office for National Statistics, which showed the average UK home value rose by 2 per cent in the year to June to 272,000 pounds.
While northern regions experienced strong growth, with house prices in the North West and North East rising by more than 4 per cent, London recorded its tenth consecutive month of decline, with average values down 2.5 per cent.
The Office for National Statistics is the government agency responsible for compiling official economic statistics across the United Kingdom.
Stamp Duty Rates and Industry Calls for Reform
The standard rate of stamp duty currently peaks at 12 per cent on homes valued at more than 1.5 million pounds. However, additional surcharges can push the rate as high as 19 per cent for overseas buyers purchasing second properties.
Stacy Eden, head of real estate at tax consultancy RSM UK, called for urgent changes to the tax structure. Eden urged reform of stamp duty "to reduce penal rates at the top end" and "provide a much-needed boost" to the housing market.
RSM UK is a major middle-market professional services firm specializing in audit and tax advice for businesses and investors.
Mortgage Pressures and Exodus of Affluent Buyers
Labour's tax increases come at a time when well-off families are already struggling to afford expensive properties due to elevated mortgage interest rates.
Market demand in central London has been further weakened by a government clampdown on non-domiciled tax status and the threat of further wealth taxes, which have prompted an exodus of affluent residents and entrepreneurs from the UK.
Official government figures released yesterday also showed UK borrowing unexpectedly rose last month as spending outpaced tax receipts, underlining the fiscal challenges facing Chancellor of the Exchequer Rachel Reeves.
