The ‘Mansion tax’ is here

As expected, the Budget confirmed an additional tax on homes priced over £2 million, although it’s not as bad as first feared. Homes priced at £2m – £2.5m will pay a council tax surcharge of £2,500 annually, going up to £7,500 for properties priced over £5m.

I was delighted to share my insights with a number of publications including The Daily Telegraph, Daily Mail, Country Life and luxury property journal PrimeResi. There’s no doubt this measure will have a significant impact on the country homes market in the South East, creating a two-tiered market in which demand for higher-value properties falls even further, while the £1m – 1.7m price bracket becomes more buoyant.

The one silver lining is that the tax won’t come into effect until 2028, which leaves a decent window for downsizers to make their move. Retirees on fixed incomes won’t want the burden of an additional annual bill they haven’t factored into their long-term plans.