Skip to content
City PM
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • DE
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • DE
Tuesday 05 May 2015 7:15 am

General Election 2015: The property market is freaking out at the prospect of a Labour government

By: Emma Haslett

Add as a preferred source on Google

The property market is terrified of Labour-led government, one of the UK's largest property search websites has suggested, thanks to the prospect of falling house prices and rising interest rates.

More on this story: How Tony Blair presided over the biggest rise in UK house prices in recent history 

According to Zoopla, Labour's policies on the housing market, which include giving councils the power to double council tax on homes left empty for a year and giving first-time buyers priority access to new homes, will "make UK property a generally less attractive investment".

Labour has also pledged to introduce a mansion tax on homes worth more than £2m, although it will also abolish stamp duty for first-time buyers.

But today Zoopla said the best outcome for those in the property sector would be a continuation of the current coalition.

[Property] will appear less attractive to owners as a result of proposed new property taxes, less attractive to landlords and investors as a result of proposed new rent controls and less attractive to first-time buyers and lenders as a result of proposed changes to current government support schemes. The follow-on impact of falling house prices and lower consumer spending to the overall economy could be significant.

Zoopla's Lawrence Hall added that the mansion tax will be significant to those wishing to invest in the UK.
[infographic id="97"]
"[It] is a great example of a good political soundbite but a poor policy. It started out as an idea to tax billionaire non-dom property owners and has turned into a proposed tax on working British families. UK homeowners already pay the highest property taxes in the developed world, so the introduction of any new tax would be value destructive to the entire UK property market. 

"But using a sledgehammer to crack some of these walnuts by further taxing working Brits primary residences and imposing controls on all landlords and tenants is dangerous to the health of the overall housing market.”

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Politics

Related Topics

  • General Election 2015
  • UK house prices

Trending Articles

  • Exclusive: Big Four giant KPMG to cut more jobs

  • Music tycoon Simon Cowell sued by prominent City lawyer

  • The former African gold miner taking on the billionaire Issa brothers

  • Tesco ‘in talks’ to exit eastern Europe

  • Easyjet agrees to £5.7bn Apollo takeover

More from City PM

  • London luxury property at mercy of Labour chaos, not Iran war

    Property
    Capital gains tax is not currently charged on primary residences. (Credit Beauchamp Estates)
  • House prices jump as property market ‘treads water in rough conditions’

    Property
    The price paid for first homes has surged 7.1 per cent in a year
  • Would a Burnham premiership deepen the North-South housing divide?

    Property
    Andy Burnham returns to Parliament
  • Right to Buy has been a huge success, of course the left hates it

    Opinion
    Modern apartment buildings representing social housing initiatives in urban development, highlighting sustainable architec...
  • Wimbledon property market drops ball ahead of Grand Slam

    Property
    Wimbledon tennis court with players in action, surrounded by a cheering crowd under clear blue skies
  • Berkeley warns of London housing slowdown in call for ‘political leadership’ from Burnham

    Property
    Berkeley city skyline at sunset with iconic university buildings and scenic views, highlighting the vibrant urban landscape
  • ‘Dire’: Rapid decline in construction as sector slashes jobs

    Economics
    Construction workers building a residential complex, symbolizing Labours push for renters rights legislation
  • Housebuilder Bellway warns mortgage rate hikes dampening housing demand

    Property
    Things could be looking up for Bellway

City PM — European politics, business and analysis.

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Topics

  • Business
  • Markets
  • AI
  • Technology
  • Opinion
  • Energy

More

  • Politics
  • Economics
  • Fintech
  • Legal
  • Sport
  • Life

Company

  • About City PM
  • Editorial Policy
  • Corrections
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 City PM · Published by CityPM Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
About · Editorial Policy · Corrections · Contact · Privacy · Facebook