London top-end property sales remain strong, despite impending budget terror

Much has been written in recent weeks about what were to happen if the new Chancellor Rachel Reeves raises taxes on the wealthy. Various people of questionable morals have suggested that any type of tax hike on wealth would lead to a mass exodus of high-net-worth individuals, desperate to escape the impending communist revolution that will inevitably follow.

However, recent research shows that despite the best efforts of the Labour government to turn a financial screw on the wealthy, they are still, at least, buying lots of expensive houses in London. 

So far according to research from Savills, 314 £5 million-plus homes have been sold in London this year, while there have been 98 sales of homes valued at £10 million or more. Is that a lot? It seems like a lot to me. It is 56% higher when compared to the same period in 2019. It is, however, 23% less than when compared to the same period last year.

‘In the run-up to the general election and ahead of the Labour government’s first budget, tax changes for higher earners have been widely debated, causing uncertainty to hang over some of the most discretionary prime London markets,’ said Savills’s director of research Nick maud. ‘As a result, we have found ourselves in a period where those affected have started to weigh up their options, waiting to see what comes forward by the new Chancellor.’

I have always found the argument that any increase in taxes would immediately cause wealthy people to leave the country not particularly compelling. There is a lot more to the reasoning of where people choose to live than taxation levels. Are the schools good? Are the people nice? Is the weather nice? Do the hospitals work? These are real and important questions. 

So when looking at cities such as London, perhaps it is worth noting that the reason people wish to live here is slightly more complex than ‘how much tax am I going to pay’. Which I think is a good thing. London is one of the best cities on earth, and it’s nice people want to live here. I wish more people could.

If higher taxes are invested in better public services, then perhaps London and the UK would become an even better place to live, making more wealthy people want to live here. Wouldn’t that be nice.

James Fisher is the deputy digital editor of countrylife.co.uk. He lives in London

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