"‘Empty nesters’ and people who bought their property decades ago simply as a family home, not as an investment, will now have to cough up thousands just to continue living in their own home."
- Ryan Etchells - Together
The introduction of the new “mansion tax” for those with properties worth more than £2 million is cause for major concern, according to Together.
Together's research found that a fifth of the UK public (21%) don’t think it’s fair that people who own properties worth more than £2 million will now have to pay an extra new annual charge (referred to as a “mansion tax”)
The term itself has proved to be a bit of a misnomer, given older homeowners who bought years ago and live on modest pensions now have to worry that the tax will hit them hard
Indeed, Baby Boomers (those aged 61 to 79 years old) are particularly up in arms about the new tax, with 21% finding it unfair
Almost a quarter (23%) of those living in London and the South West of England are set to be hit the hardest by the unfair change, especially given the stark difference in regional property prices
Those living in Bristol (27%), London (23%) and Plymouth (23%) are calling out the unfair “mansion tax” most strongly
Ryan Etchells, Chief Commercial Officer at Together, commented, “The Baby Boomer generation - somewhat unfairly - tends to have a bad reputation due to buying homes in the 1970s–1990s when prices were low and disproportionately benefitting from house price inflation since then. However, with this new “mansion tax” in place, as our research proves, it’s crystal clear that they will be hit hardest.
“This means ‘empty nesters’ and people who bought their property decades ago simply as a family home, not as an investment, will now have to cough up thousands just to continue living in their own home. That’s utterly unfair and will penalise them, adding even more cost pressures. Asset-rich but cash-poor older homeowners could really struggle, as this “mansion tax” could be equivalent to an entire year’s state pension.
“The industry needs to prepare for the likelihood that the government won’t carry out any affordability checks. This means lenders will need to factor this additional cost into mortgage assessments for homes above the £2m threshold, of which there are many, especially in London and across the South of England.”
