The Standard quotes William Marriott on the impact of the newly introduced 'mansion tax' in the UK

Owners of tens of thousands of properties in England valued at more than £2m are set to be hit with a surcharge of at least £2,500 from 2028, in what has been dubbed a mansion tax.

The High Value Council Tax Surcharge on properties valued at more than £2m is part of a range of tax rises included in Chancellor Rachel Reeves's Autumn Budget to allow her to meet her own self-imposed financial rules.

William Marriott, Partner in the Private Property team, comments for the Standard:

Those close to the £2m mark may look to challenge any valuation rather than downsize, unless that is something they were contemplating anyway - particularly given the costs involved with a property purchase and sale. However, those who have been holding on to higher value properties, particularly over the £5m mark, and especially those who have retired, may consider this the final straw. Combined with increasing energy and maintenance costs, the so called ‘mansion tax’ could push those homeowners to make the move that they have been contemplating for a while.

"Whilst properties in the bracket just below the £2m threshold will be more attractive in some cases, this may prompt buyers to extend their search area to get the same sized house slightly further away from a prime area at a lower value.

"Whilst not confirmed, it has been reported there may be the ability to defer the payment to the point of sale, or death, which may reduce the rush to downsize.

"One thing is certain though – this will focus the minds of many people who have been considering downsizing.

Read the full piece in The Standard here.