Taxes are hitting the property market harder than the Middle East war, a London estate agent has warned.

Jeremy Leaf, north London estate agent (pictured) and a former RICS residential chairman, exclusively told The Neg that the change in the Prime Minister was the main concern among buyers.

Buyers’ concerns are particularly focused on what property taxes Andy Burnham will change and how this will affect the cost of moving home, he says.

Leaf told The Neg: ‘In our offices, concerns about not if, but when, property taxes will rise, have replaced the Iran war as an excuse not to buy or sell.”

Land Value Tax

With Andy Burnham on course for Downing Street, there are a number of property taxes that he may decide to change.

Perhaps the most speculation has been around introducing a Land Value Tax.

It is understood that Burnham is a fan of a system that replaces both Stamp Duty and Council Tax with an annual property tax of 0.48% of a home’s value. It would equate to £1,440 a year on a £300,000 home.

It would have a far bigger impact on areas such as London and the South East, where property prices tend to be higher.

In our offices, concerns about not if, but when, property taxes will rise, have replaced the Iran war as an excuse not to buy or sell.”

Leaf went on to say that other pressures continue to affect the property market.

He explains: “The fall out on mortgage rates and the cost of living has not gone away.

“Decisions to move are so dependent on confidence, so not knowing one way or the other is unsettling.

“Conversely, there is more hope among aspiring first-time buyers that they will be given more of a helping hand when Andy is at the helm.”

Leaf concluded: “Those who are not dependent on finance, or where it forms a relatively low proportion of the purchase price, are sensing an opportunity so are negotiating even harder.”