An agent in a once unfashionable part of London says he is getting “numerous” inquiries from local residents worried about a new Mansion Tax.

Nick Crayson, of Crayson in the formerly down at heel but now trendy Notting Hill, said: “There’s much uncertainty around how a new Mansion Tax would be imposed, but what does seem certain is that a Labour or Liberal Democrat win in next year’s general election will be swiftly followed by the introduction of such a tax.

“Understandably, this is causing some concern.

“The most worried property owners are domestic residents. We have had numerous inquiries over the last couple of weeks from property owners who would struggle to pay a substantial new tax.

“Last year the Treasury estimated that the average Mansion Tax would amount to around £36,000 per year. Many of these property owners are considering selling up while the going’s good.

“Particularly concerned are retired residents who have lived in their properties for decades. Their liquid wealth tends not to match the value of their property as these homes were purchased when London prices were more in keeping with the rest of the country, and when areas such as Notting Hill were considered far from ‘prime’.

“It’s not the international bankers and wealthy foreign investors who will be hit by this tax, it’s the remaining domestic home owners who live in and love London, and who make it a living, breathing community.

“The outcome will of course be that owner occupiers are driven further away from central London. Many parts of the capital are already sadly unoccupied, with countless overseas owners using their properties for only a few weeks of the year.

“The Mansion Tax, if or when it is born, will have the sad effect of turning central London into a ghost city.”