By Nick Sanderson

Labour’s new mansion tax risks undermining the very housing market it claims to want to boost.

At first glance, targeting high-value properties may seem like a straightforward way to raise revenue from those who can afford it. However, taxing the top of the housing ladder is inherently risky, especially at a time when the market is already fragile.

Some say it will encourage downsizing as older homeowners look to reduce living costs, from those associated with maintaining large family homes to now, reducing the tax liability that now comes with higher-value properties.

On the other, it may stall the market in the very place where movement is vital. People living in large family homes, who have benefited from vast increases in property prices, particularly in London and the South East, could face a more challenging job when trying to sell up. It........

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