Labour victory risks wiping thousands off the value of your home, warn property experts
04-27-2015
HOUSE prices could be hit by a Labour General Election victory, a leading property website has warned.
By Macer Hall, Political Editor
Ed Miliband threat to house pricesGETTY
Putting Ed Miliband in Downing Street could hit house prices, say property experts
Zoopla said Ed Miliband in Downing Street could "spell trouble" for first-time buyers while his plans for a "mansion tax" on larger homes may have a "knock on effect" on the entire property market.
An article on the website criticised Labour plans for limiting the Tory Help To Buy scheme for first-time buyers and a new ISA for people saving for a housing deposit.
"This could limit the support offered to aspiring first-time buyers, and eventually kill off the initiative," the article said.
It seems likely that a Miliband win in May would have a negative impact on the UK housing market
Lawrence Hall of Zoopla
"Additionally, the party’s proposed mansion tax will likely have significant consequential effects on the entire housing market, not just those properties valued at more than £2million.
"The side-effects of the tax would include a reduction of prices at the top end of the market, as well as deterring foreign investment and driving increased competition for middle-class families below the threshold where there is already a shortage of stock."
Responding to the Labour manifesto, Lawrence Hall of Zoopla, said: “It seems likely that a Miliband win in May would have a negative impact on the UK housing market in the short to medium term.
“The Tories have paved the way for considerable strides in the property recovery, but the Labour proposals for a punitive tax on homes and restrictions on some of the first-time buyer support systems would create uncertainty and could well pull the rug out from under the feet of recovery and dampen market confidence.”
Zoopla said that unravelling recent Coalition initiatives to support the housing market could lead to a fall in demand in property "which, alongside an increase in supply from those fearing increased property taxes, could lead to a potential sharp decline in house prices".
Tory housing minister Brandon Lewis said: "Labour haven’t learnt their lesson – they want to cut schemes to help people to buy a home, make it more expensive to build, and would borrow more money.
"Thanks to our long-term economic plan, housebuilding in England is at its highest level since 2007.
"Our schemes are helping hundreds of families every month to buy their own home and we will go further by allowing new homes to be built specifically for young first-time buyers.
"Our Government-backed schemes will help a million more people become homeowners in the next Parliament.
"Our long-term economic plan is getting Britain building again and is helping people achieve their dreams of home ownership – the biggest threat to this is Ed Miliband in government."