A surcharge will be place on council taxes for expensive homes

The UK’s new ‘mansion tax’ is set to hit homeowners in London hard, particularly for middle-class Londoners who have seen the price of their property balloon in the last two decades.

Chancellor Rachel Reeves introduced a new high-value council tax surcharge for owners of properties valued at over £2m in her second Budget on Wednesday.

From April 2028, owners of properties above this threshold will be liable for a recurring annual charge, which will be added to existing council tax payments.

There will be four price bands, with the surcharge rising from £2,500 for a property valued between £2m and £2.5m to £7,500 for a property valued above £5m.

The measure is estimated to raise £0.4bn in 2029-30, with the revenue flowi

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