Chancellor John Healey has reportedly ruled out extending the planned property surcharge to homes worth £1.5m or more. The lower threshold had been considered as the Treasury sought revenue for cost-of-living support.
Former chancellor Rachel Reeves announced the levy last year for homes worth more than £2m. Due to take effect in 2028, it would bring an annual £2,500 charge for homes valued between £2m and £2.5m, rising to £7,500 for those worth £5m or more.
Warnings about the proposed expansion focused on London homeowners. A £1.5m threshold would have brought roughly twice as many homes in the capital within the levy’s scope and could have tripled the number affected in suburban London. Estate agents have also warned that the levy, though not yet in force, is distorting the housing market.
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