More than half of homeowners in some neighbourhoods could be hit by Rachel Reeves' new mansion tax, according to Daily Mail analysis. The tax, announced in the Budget, targets properties valued over £2 million, with an annual bill of up to £7,500.
In wealthy central London areas such as Knightsbridge, Belgravia and Hyde Park, 63% of homes sold in the year to August went for £2 million or more. In Marylebone and Park Lane, the figure was 43%, and in Wimbledon Common, 41%. However, in 90% of middle-layer super output areas (MSOAs) — regions of 5,000 to 15,000 people — not a single home sold for that amount.
The tax is expected to raise £400 million for the Treasury by revaluing 2.4 million of the priciest homes in council tax bands F, G and H, with around 100,000 properties likely to be affected. Labour argues that because typical Band D properties are not affected, they are protecting 'working people'. But critics warn that families across the South will feel 'singled out'.
Property expert Amy Reynolds of Antony Roberts estate agents said: 'In areas like Richmond, a £2 million valuation doesn't equate to extraordinary wealth — it often just reflects decades of organic price growth. Many long-term owners, particularly older residents who are no longer earning, are asset-rich but cash-poor.' She called the tax 'regionally unfair' for targeting 'perfectly ordinary family homes' in London.
The tax will apply from April 2028, based on 2026 prices, and will be additional to existing council tax. The Conservatives described it as 'a war on family homes across Middle England'.
