High-end homeowners right across prime central London would need to significantly reduce the size of their properties in order to avoid the new Mansion Tax, with some requiring them to be almost halved, according to Ennes Global CEO, Islay Robinson (pictured).

The firm has analysed all homes currently listed for sale across prime central London (PCL) at £2 million or more, looking at the average asking price and size of the properties and the corresponding price per square foot. It then calculated how much the average mansion would need to shrink in order to come under the new threshold.

43% reduction

Ennes found the average home currently listed above £2 million in PCL is £3.5 million and has 1,768 square feet. Based on an average price of £1,995 per square foot, a property would therefore need to be less than 1,002 square feet to avoid the tax, which would require a typical PCL mansion to be reduced in size by 43%.

Camden would need the most dramatic adjustment, at 48.8% and in the City of London, that figure is 44.9%, and 44% in Westminster.

Kensington and Chelsea would require a 42.7% reduction and, even in Hammersmith and Fulham, a typical PCL mansion would still need to lose 33.6% of its size.

We are unlikely to see prime central London’s property landscape carved up like a Christmas turkey simply so homeowners can avoid a Mansion Tax.”

Robinson says, though, that: “We are unlikely to see prime central London’s property landscape carved up like a Christmas turkey simply so homeowners can avoid a Mansion Tax.

“However, what these figures highlight is the scale of adjustment a high-net-worth buyer would theoretically need to make to their lifestyle in order to escape this latest tax grab.

He adds, though, that: “Those capable of purchasing at this level are unlikely to be phased by the introduction of a Mansion Tax.”