Labour party’s win would be bad news for UK properties

Today people are voting for UK's one of the most uncertain election at least in 30 years. As of latest poll result main contender Conservative party and Labour party remain tied with no expected win an outright majority. Moreover Scottish National Party (SNP) is to come out as match maker, as they are expected to win 59 out of the 60 seats allotted to Scotland.

Probabilities are quite high that Labour party would form a minority government, with outside support of SNP.

This coalition government could be a big blow for UK's real estate market as well as country's fiscal discipline.

Why?

• SNP has announced that it will be abolishing austerity policies, which is bad news for country's deteriorating fiscal imbalance. However all the parties have pledged to reduce deficit, however without austerity task would be daunting.

On the other hand, Labour party's coming to power would be bad news for the real estate market, which is already turning sour in anticipation of such.

• According to estate agent Douglas & Gordon, sales of homes worth more than £2m have dropped by 80% in the past year. According to them in past month alone high end home owners expresses interest of selling properties asking for valuation. Number was as high as 37 compared to normal level of 6.

What are the policies that might hurt real estate market?

• Labour Party's pledge to end "non-domiciliary" status for rich foreigners if they win the general election. As per Non-domicile status, UK resisdents who have permanent home outside the country need not pay UK tax on foreign income.
  
  
• The Labour Party has pledged to introduce a mansion tax on high-value homes if elected.