Tue Sep 17 06:25:55 UTC 2024: ## London’s Luxury Housing Market Cools Amid Tax Fears

**LONDON** – Demand for high-end homes in London has cooled in recent months, driven by concerns over potential tax increases from the new Labour government, according to property data firm LonRes.

Sales of prime central London properties fell by 7.5% in September compared to the same period last year, while new listings increased by 8.1%. The average selling price for these properties also dropped by 4.2% year-on-year.

The market saw a brief rebound in July following the election, but this momentum quickly dissipated as attention turned to the upcoming budget announcement on October 30th. Labour finance minister Rachel Reeves is expected to unveil potential tax increases, particularly targeting higher earners and overseas income.

Nick Gregori, head of research at LonRes, highlighted that the negative sentiment is most pronounced at the top end of the market, with concerns focused on potential changes to “non-dom” tax breaks and other measures aimed at wealthy taxpayers.

While some estate agents report strong interest from overseas buyers, others suggest that some current international residents are considering selling their properties, potentially contributing to the market slowdown.

Prime Minister Keir Starmer’s recent statement that the budget would be “painful” and that those with “broader shoulders” should carry a heavier burden has further fueled speculation about increased taxes on the wealthy.

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