Labour Taxes Ice London’s Housing Market: Marcus Ashworth

The secret of postwar UK politics has been to keep house prices rising so middle-class voters feel wealthier. This most basic of UK electoral rules — it’s the housing economy, stupid — has escaped Chancellor of the Exchequer Rachel Reeves, whose tax policy has smothered an already struggling market.

Small though her tweaks are, they’re having a profound psychological effect on confidence because they display the likely approach for the next four years — note the March rush to get deals done before an increased transaction tax came into effect. Furthermore, why would housebuilders commit to build millions more homes if there aren’t the buyers queuing ...