Property television presenter Kirstie Allsopp has criticized the Labour party's tax policies, stating that recent tax increases on expensive homes have led to a substantial slump in property values, particularly in London. Allsopp described the policy as a "massive own goal," suggesting that the party was warned about the potential consequences.

Her comments come as a report indicates that homes in certain parts of London have lost nearly £300,000 in value over the past year. This decline is linked to Labour's decision to raise stamp duty on more expensive properties, introduce a surcharge on second homes, and implement an annual tax of up to £7,500 on properties valued over £2 million, often referred to as a "mansion tax."

Official figures show that government borrowing increased unexpectedly last month, with spending exceeding tax receipts. Separately, data from the Office for National Statistics revealed that while the average UK home value rose by 2 percent in the year to June, reaching £272,000, London experienced its tenth consecutive month of decline. The average property value in the capital decreased by 2.5 percent.

The City of Westminster, which includes areas like Mayfair and Belgravia, has been the most severely affected borough in London, with prices falling by 25 percent to approximately £854,198, representing a loss of £290,624. In Kensington and Chelsea, property values have dropped by nearly 15 percent, or over £215,000, from about £1.5 million to £1.25 million in the past 12 months. Other London areas like the City of London saw a 20 percent decrease, while Tower Hamlets and Hammersmith and Fulham experienced 13 percent drops.

The standard stamp duty rate for homes over £1.5 million is 12 percent, but this can escalate to 19 percent for overseas buyers purchasing second properties. Stacy Eden, head of real estate at tax consultancy RSM UK, has called for stamp duty reforms to alleviate high rates at the upper end of the market, arguing it would provide a needed boost to the housing sector.

These tax increases by Labour are occurring at a time when even affluent families face challenges in affording expensive homes due to high mortgage rates. Additionally, a crackdown on non-domiciled residents and the prospect of further wealth taxes have reportedly led to an exodus of wealthy individuals and entrepreneurs from the UK, impacting housing demand, particularly in London.