Tuesday, 25 November 2014

[Mansion Tax Fun] Smoking gun. Or possibly smoking crack.

H/t Ben Jamin, a keen Mark Field watcher.

London MP Mark Field, two years ago:

... property investment does not just generate profits for property owners. In central London, half of the properties in the private sector are bought for rental investment rather than owner occupation. Known as the “private rented sector”, this not only stimulates significant tax revenues, it actively fuels economic growth. It has been estimated that, for every central London property bought for rental, a further 20 per cent of its value is spent on other services. This brings employment to lawyers, accountants, architects, builders, and so on...

The [Mansion Tax] will result in higher rents, making London less attractive to multinationals. Corporate headquarters have global choices – many can, and will, relocate. Corporate tenants, and privately-educated foreign students in central London, contribute a large amount to the £10bn spent on shopping, education, the night time economy and tourism in the heart of the capital. International investment also makes many developments viable. It can support cash flow, and underpin the provision of public amenities and affordable housing.

So he says, hooray for wealthy foreigners, they bring money into the country. And the Mansion Tax will frighten them away (it wouldn't of course, because a tax on land values does not increase rents, if anything it would bring them down a notch). And hooray for buy-to-let investors (it would appear).

London MP Mark Field, two months ago:

For a start, let’s debunk the idea that those living in pricey properties are rich. There are many people in London who happen to reside in homes whose value has inflated to a level that bears no relation to a household’s ability to stump up large cash sums. An annual charge on properties valued at over £2 million would be ruinously expensive for many of these so-called ‘super rich’.

It would also most likely drive greater numbers of traditional Londoners from their homes, vacating even more prime property for foreign buyers and heightening the sense of injustice that a mansion tax is designed in part to salve.

So he says, boo to wealthy foreigners, coming over here, taking our homes, paying our taxes etc. And boo to buy-to-leave investors (it would appear).


Lola said...


Ben Jamin' said...

Obviously he's taken a leaf out of Boris Johnsons similar utterances on the subject.

These politicians must think the public are stupid not to notice these contradictions.