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The UK government has announced a new "mansion tax" on homes valued at more than £2 million, which is expected to raise £400 million by 2029-30. The tax will be introduced in April 2028 and will apply to properties in England, with four price bands and escalating surcharges starting from £2,500 for homes valued between £2 million and £2.5 million, rising to £7,500 for properties worth £5 million or more.
The tax is part of Chancellor Rachel Reeves' efforts to address the country's budget shortfall and will be charged annually, in addition to existing council tax. The revenue generated will go to the Treasury, rather than local authorities. The move has been met with criticism from some experts, who argue that it could discourage transactions and renovations, and disproportionately affect London and the South East, where property values are highest.
The government will conduct a public consultation on the implementation of the tax in early 2026.
Would you like to know more about the potential impact of the mansion tax on the UK housing market? How do you think this tax will affect property prices and sales in London and the South East?
