PROPOSALS for a controversial "mansion tax" will trigger a slump in sales of Hampshire homes, estate agents warn.

Housing experts say a proposed Labour tax hike on the most expensive homes will create a “pinch point” for buyers at a time when house prices are already soaring.

And opposition politicians accuse the Government of playing “divide and rule” by unfairly penalising homeowners who have worked hard all their lives.

Labour leader Ed Miliband wants to impose the charge on homes worth more than £2m.

He said the estimated £2.5bn proceeds would be used towards funding the overstretched NHS.

Very few homes in Southampton fall into the threshold, but those in leafier Hampshire towns and villages could fall victim.

His pledge follows the Liberal Democrats’ longstanding plans for a mansion tax to raise £1.7bn towards a £60 income tax cut.

Rob Batten, director of Spencers estate agents in Brockenhurst, said sales of homes in the higher bracket have already slumped since the Lib Dems proposed the scheme earlier this Parliament.

He said: “The market has already taken a tumble and this will reinforce that.

“Thresholds are dangerous because they create another pinch point in the market.

“They are already being taxed on stamp duty.

“This is a double pinch point and it will distort the market.

“It’s also going to hit long-term homeowners who don’t have huge incomes.”

Chris Hayward, owner of Hayward Fox, which has five offices in the New Forest said very few properties would be subject to it, and said: “People who can pay that amount don’t seem to worry about costs.

“But they are taking it off people who have worked hard.”

Southampton Conservative group leader Councillor Royston Smith said some long-term homeowners with expensive properties would be scared into downsizing to avoid tax.

Cllr Smith added: “They are playing divide and rule.

“A lot of people have worked years and years to have a property worth a lot of money but they don’t have the means to pay an additional tax.”

Southampton City Council housing Cabinet member Cllr Warwick Payne said it would help alleviate “generous” council tax rates for larger homes, but added: “It’s unlikely to bring in that much money but I am sure Southampton residents would rather have something than nothing.”