UK’s £2 Million-Plus Homes Risk Losing 5% in Value Next Year

UK homes worth more than £2 million ($2.7 million) could drop about 5% in value next year as the market adjusts to a so-called mansion tax, according to forecasts from Hamptons.

The broker said it expected these homes — most of which are in London — to see a “one-off adjustment” in 2026 based on price reductions that factor in a new levy coming into force in April 2028. Chancellor of the Exchequer Rachel Reeves last month unveiled a tax on homes valued at more than £2 million, with a surcharge starting at £2,500 a year and rising to as much as £7,500.