Resentment over wealthy foreigners buying up real estate has created new calls for a "mansion tax" in the U.K. But real estate agents say the tax could reach far down the economic ranks and hurt the property market.
Shadow Chancellor Ed Balls said that if it takes power, the Labour Party would introduce a mansion tax and use the money to improve national health care. The plan calls for an annual tax on properties worth more than £2 million, or $3.3 million.
An actual rate hasn't been set yet, but proposals call for a "banded," or tiered tax, with lower-value properties paying a different rate than more expensive properties.