Labour ‘game changer’ tax plan offers chance for investors, says agent

An estate agency suggests anyone owning a property in a sought-after school catchment area could enjoy a 20% premium if Labour wins power and approves VAT on private school fees.

Dominic Agace, chief executive of the Winkworth franchise chain, believes there will be up to a 20% premium on homes near good state schools if the move to impose VAT on private schools goes ahead.

He said: “Parents are facing a big squeeze – a combination of VAT on school fees, and mortgage costs have risen. The VAT move will be a game changer. I think we will see more parents opting for a hybrid version, a mix of private and state schools. The result will be up to a 20% premium on homes near good state and grammar schools. We will also see an increase in down-sizers as many battle to keep their children in private education.”

If Labour wins the July 4 election it is unclear when the private school fees VAT imposition would take effect. Labour’s housing spokesperson, Bridgit Phillkipson, told LBC this week: “It’s subject to any decisions that will be taken as part of the budget process.”