27.11.2025 00:55
The UK government is planning a new additional tax for luxury homes priced at £2 million and above. The regulation aims to redefine the thresholds to protect low-income households, while tax discussions have led to a significant loss of confidence in the housing market. According to Rightmove data, sales of homes priced at £2 million and above have dropped by 13%.
The UK government is introducing new taxes for luxury property owners in its new budget proposal.
ADDITIONAL TAX FOR PROPERTIES VALUED ABOVE THIS PRICE
To prevent low-income households from facing sudden tax burdens, the regulation plans to collect an additional property tax from homeowners for properties valued at £2 million and above. This additional tax will be implemented starting from April 2028.
CAUSED A LOSS OF CONFIDENCE IN THE MARKET
The tax discussions that began before the budget debates in the House of Commons have led to a significant loss of confidence in the housing market. According to data from Rightmove, the UK's largest real estate portal, sales of homes priced at £2 million and above have decreased by 13% compared to last year. Paula Higgins, CEO of Homeowners Alliance, pointed out the chaos created by the process, stating, "The uncertainty that has lasted for six months has practically frozen the housing market."
CALL FOR REASSESSMENT FROM EXPERTS
Experts note that property tax values have not been updated for 34 years, emphasizing that the current figures do not reflect market conditions. Higgins stated that if a new tax is to be implemented, sudden burdens will strain low-income homeowners, and called for a comprehensive reassessment nationwide for a fair system.
Additionally, various reform proposals are on the agenda, such as transferring stamp duty from the buyer to the seller for properties over £500,000. Experts emphasize the importance of predictability, stability, and long-term planning in housing tax regulations.