Mansion tax fears hit £2m-plus home sales
Analysis suggests properties above £2 million are less than half as likely to sell as cheaper homes.
News London evidence indexOpen analysis ▾
Trust 64 – named source and specific figures from TwentyCi provide moderate evidence, but only one outlet cited.
Higher is stronger
Critic 87 – clear impact explained, quote included, specific data, next steps noted, story holds together well.
Higher is stronger
Hype 30 – language is mildly emphatic but headline matches article content without sensational exaggeration.
Lower is better
Homes worth more than £2 million are now less than half as likely to sell as cheaper properties, according to new analysis by TwentyCi. The findings raise questions about the impact of the planned mansion tax on London's prime property market.
The levy, announced in the 2025 Budget by former Chancellor Rachel Reeves, is scheduled to come into force in April 2028. It will apply to all properties valued at £2 million or more. Property data firm TwentyCi claims its analysis indicates the policy is already affecting the top end of the housing market.
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Sales figures reveal market slowdown
TwentyCi's analysis found that between June and September 2026, 53.1% of homes listed below £2 million reached the exchange stage. For properties above the £2 million threshold, this figure dropped to 25%. During the same period, 966 homes valued over £2 million were sold, while 2,898 such homes either failed to attract a buyer or were withdrawn from the market.
These figures are likely to intensify concerns about the health of London's prime property sector. The market has already faced challenges from increased mortgage costs, higher stamp duty, and the abolition of non-dom tax status.
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Mansion tax details and potential changes
Under the proposed mansion tax, owners of properties valued at £2 million or more will face an additional annual charge on top of council tax. This charge will increase on a sliding scale. For homes valued above £5 million, annual charges could reach £7,500.
Estate agents and property experts have previously warned that the tax risks deterring buyers and sellers at the upper end of the market, particularly in central London where property values frequently exceed the £2 million threshold. Speculation has suggested that Chancellor John Healey might consider lowering the threshold to properties worth £1.5 million in a future Budget. Such a move would significantly increase the number of affected homes, potentially placing further pressure on the market.
However, reports indicate that the Chancellor may decide against lowering the threshold due to backlash from Labour MPs and London councils. Analysis by estate agents Hamptons shows that all but one of the top 20 most-affected constituencies are located in London.
Colin Bradshaw, chief executive of TwentyCi, told The Times that the findings provide a valuable snapshot of the £2 million-plus market, offering agents and lenders a clear benchmark for future performance.
Questions this report answers
+How much are homes worth more than £2 million less likely to sell?
Homes valued over £2 million are less than half as likely to sell compared to cheaper properties. Between June and September 2026, only 25% of homes above £2 million reached exchange stage, compared with 53.1% of those below the threshold.
+When will the mansion tax come into effect and what will it apply to?
The mansion tax is due to start in April 2028. It will apply to all properties valued at £2 million or more. For homes valued above £5 million, the annual charge can reach £7,500.
+How many homes were affected by the slowdown in sales?
Between June and September 2026, 966 homes valued over £2 million were sold. During the same period, 2,898 such homes either failed to find a buyer or were withdrawn from the market.
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