A mansion tax won't help the market or the deficit

7th November 2014

Nigel Wilson, chief executive of Legal & General, writing in the Mail, says that he wants a tax system which is workable and fair. He argues that a mansion tax is neither. It won't help the housing market, and it won't help the deficit, he says. The problem with housing isn't taxation – it is supply and demand. He points out that decades of inflation means 70% of the £2m "mansions" in London are actually flats or terrace houses. We need to build more homes: 200,000 annually. He explains that, a successful housing market needs people to move and the mansion tax threat is already slowing top-end sales - with repercussions down the chain. He suggests a better way for politicians to tax property would be to reform the domestic rates, put additional high-value bands in place, and make second homes pay a premium.

Daily Mail (03/11/14)