One chart that shows why Foxtons is celebrating a Conservative win

Estate agents see massive rallies as relief over mansion tax takes hold

Hazel Sheffield@hazelsheffield
Saturday 09 May 2015 01:25

Investors in Foxtons will be celebrating this morning after shares in the estate agents lept as much as 13 per cent after it emerged that David Cameron would be staying on at number 10.

The jump was likely sparked by relief after Labour’s threat of a hefty mansion tax – dubbed unnecessarily complicated by respected watchdog the IFS – looked like it would not come to pass.

There were fears of price boom in the aftermath of the election Labour won, caused by investors avoiding the tax by moving out of pricy properties in the most expensive parts of central London to residential areas such as Battersea and Fulham.

Labour had planned a £3,000-a-year levy for homes worth between £2 million and £3 million and the Lib-Dems £2,000 for homes worth between £2 million and £2.5 million.

Estate agent Savills, whose shares were also up 7.5 per cent after markets opened, said they expected would-be sellers that were holding off putting houses on the market to do so now.

Equally buyers are expected to return after holding off over uncertain housing policy.

Savills said the suburbs outside London are likely to see the highest demand in the aftermath.

"Prime London markets were looking much more fully priced than those in and beyond the commuter zone, and will have to operate in a relatively high tax environment given stamp duty increases imposed in December 2014," said Lucian Cook, Savills UK head of residential research.

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