- within Real Estate and Construction topic(s)
- in United Kingdom
- with readers working within the Property industries
James's comments were published in Property Week, 26 November 2025, and can be seen here.
James Vernor-Miles, head of our Residential Property department, highlights that the Chancellor's announcement of a Mansion Tax marks one of the most significant changes to the housing market in decades.
The new measure introduces an annual £2,500 surcharge for properties valued above £2 million, aiming to raise revenue while addressing perceived inequalities in property taxation. James notes that this reform will have far-reaching implications for homeowners, particularly in prime areas such as London and the South East, and urges advisers to review client portfolios promptly.
Industry experts warn that the Mansion Tax could create uncertainty and deter future investment in high-value homes. Concerns centre on the potential for reduced liquidity in the prime property market and the risk of owners slipping into negative equity if prices adjust downward. There are also questions about valuation accuracy and the possibility of legal challenges, adding complexity for advisers and property professionals navigating these changes.
Despite the challenges, some commentators believe the market will eventually stabilise. While transaction volumes may dip in the short term, lifestyle-driven moves and downsizing activity are expected to continue, offering opportunities for advisers to provide strategic guidance. James stresses that proactive planning covering valuations, ownership structures, and succession strategies will be essential to help clients adapt to this new landscape and mitigate financial risks.
Read the full article on the Property Week website [subscription required].
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
