Properties worth more than £2m have dropped in price by an average of almost £285,000 amid concerns over Labour’s incoming “mansion tax”.
On average, the discount on properties in the UK valued at £2m or more reached £284,583 since the beginning of this year, analysis showed.
It marks a widening of the discount from almost £244,000 a year earlier. Homes sold between April and June of 2026 averaged the largest discount at £315,119. From July to September, the discount narrowed slightly to £293,735.
Property prices have dropped amid weaker demand for high value homes since the announcement of Labour’s mansion tax, experts said.
The new high value council tax surcharge, announced in last year’s autumn Budget by Rachel Reeves, the former chancellor, will be introduced from April 2028.
Under the Government’s plans, homes valued at £2m or more will face an annual charge of between £2,500 and £7,500 on top of council tax. An estimated 143,992 homes in England will be hit by the levy.
