Rachel Reeves ‘destroying’ key UK market as Brits scared of new tax | Politics | News
Ms Reeves has been criticised in the face of grim figures. (Image: Getty)
Rachel Reeves has been accused of destroying the housing market as new figures paint a grim picture. Data from estate agent firm Savills suggested prime country house prices have fallen 7.8% โ wiping ยฃ363,500 off the average value and signalling a slowdown at the top end of the market. In addition, new figures from wealth management company Saltus suggested this is feeding into a growing loss of confidence in property among wealthy homeowners.
Data from the firm’s Wealth Index โ a study of 2,000 UK high-net-worth individuals โ found that 46% are concerned about the future value of their primary residence, rising to 53% in London. Younger high-net-worth individuals (HNWIs) โ aged 25 to 44 โ are the most anxious, at 57%, experts added. Meanwhile, 44% of Labour-voting HNWIs reportedly regret their vote, citing the new high-value property tax surcharge.
Dubbed a “mansion tax”, the annual, recurring charge will be rolled out in 2028.
READ MORE: Beloved British holiday chain set to axe 250 jobs as tax hikes bite
David Simmonds MP slammed Ms Reeves. (Image: UK Parliament)
The fee will be paid alongside existing council tax and will range from ยฃ2,500 to ยฃ7,500, based on 2026 property valuations.
David Simmonds, Conservative shadow housing minister, told the Express: โJust like the rest of our economy, Rachel Reeves and the Labour Party are destroying our housing market. After making a pledge to build 1.5 million homes – a pledge that even they admit they will not hit – they have driven down property prices with their endless taxes and red tape.
โOnly the Conservatives have a plan to unlock our housing market by scrapping Stamp Duty on primary residences and deliver a stronger economy.โ
Henrietta Grimston, chartered financial planner at Saltus, said: โWhat these findings tell us is that for high net worth individuals, property is no longer the straightforward store of wealth it once was.
“The combination of elevated mortgage rates, stamp duty changes, a potential mansion tax and geopolitical uncertainty has introduced a huge amount of anxiety, particularly among younger homeowners and those based in London.
โFor many people, their home is both a place to live and a major part of their overall wealth, so concerns about values and the prospect of higher taxes naturally carry real weight.
“That is prompting more people to think carefully about how much capital they have tied up in property and how resilient their plans would be if costs rise further.โ
Ms Reeves’ November 2025 Budget document stated that the Government is “asking those owning the highest-value properties to contribute more”.
It added: “Local authorities will collect this revenue on behalf of the central government and will be fully compensated for the additional costs of administering this new tax.
“Revenue will be used to support funding for local services, with further consideration through the next spending review in 2027.
“The Government will consult on detailed implementation of the HVCTS in the new year, including determining who might need additional support to pay the charge and how to deliver it.”
