Following consistent promotion by the Liberal Democrats, Labour leader Ed Milliband took the decision to back proposals last week. He said his party would use the extra funds to reintroduce the 10p rate of tax which was abolished in April 2008 by then Prime Minister Gordon Brown.

The latest Mortgage Solutions People’s Poll asked whether such a move would be fair and 57% of respondents indicated they would be against the proposed policy.

As discussions continue Trevor Abrahmsohn, estate agent at Glentree, said that the indecision from government was scaring potential buyers away from the UK.

“The mansion tax idea is ridiculous,” he told Mortgage Solutions.

“The government needs to make a decision because these buyers are transient and once they get spooked they’re off.

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“We’ve had Stamp Duty go up, an annual tax come into force, capital gains and now a mansion tax and you expect these people to hang around?”

Following Labour’s proposal the Liberal Democrats announced it would consider extending its plans, and a third of voters in our poll agreed that a mansion tax would be a fair move.

But Abrahmsohn added that the announcements had been made for political gain and that the market had been affected by the speculation.

“All this talking is to try and increase parties’ chances in the Eastleigh by-election.

“But once the trickle of buyers away from London becomes apparent you can’t help it. People will simply move elsewhere.

“Activity is incredibly down, and these are people who set up businesses, employ people, pay tax and fund the nation.”