“There is a misconception, that this new government is playing with, in order to pander to newly blue voters in the regions. The title itself is a misnomer. First, mansion tax doesn’t apply singularly to mansions but instead there is a risk it would impact a large volume of properties in London and the South East.

It is not just the luxury houses of Bishops Avenue which would be taxed, but also family homes in Queens Park or Kilburn. Just because someone lives in a flat or a house where the value has increased over the years, it doesn’t mean they have the disposable income (or liquidity) to actually pay this additional tax. Further, this tax would impact directly upon that part of the population who already contribute the largest sums of property tax in the form of stamp duty. The expensive nature of property in the South East dictates that those who seek to buy already pay an aggressive level of stamp duty.

The property market has been flat for a year. An overly aggressive stamp duty regime, coupled with a change to the rules relating to relief on investment properties, compounded by a year of political uncertainty, left the market in a neurotic and unhealthy state. The green roots of positivity have only re-emerged since the general election and the feeling that the impasse around Brexit has been resolved.

Implementing a mansion tax now would murder the £1.5m-plus property market in London, which whether people like it or not, represents a significant amount of real estate.

When the Prime Minister spoke of levelling the divide between London and the regions, I didn’t imagine the plan was to do so by hammering London into the ground. Sajid Javid needs to do better. This government needs to think about how they encourage investment in the country, not how they can squeeze more blood out of a London property market just starting to get back on its feet.”

Joshua Elash, director, MT Finance