Chancellor Rachel Reeves announced in her autumn Budget that Labour will be implementing a new “mansion tax” on properties valued at over £2 million.
Under the new ‘high value council tax surcharge’, set to come into force in April 2028, homeowners will pay an additional annual tax on properties above this price point.
Analysts, however, have been quick to point out that such a tax will disproportionately impact homeowners in London, where two thirds of qualifying transactions happened this year alone.
In the capital, a £2 million property is certainly expensive —more than most people can afford— but rarely does it equate to a mansion, critics agree.
“In London, this is a terrace tax, not a mansion tax,” said Dominic Agace, chief executive of Winkworth.
“Many people living in London in £2 million plus homes are those who are leveraged with large mortgages or those with their property as their only asset and living on a small retirement income.”
Under the government’s new legislation, here’s what a “mansion” looks like across London in 2025.
Clapton, E5
£2 million
This semi-detached Victorian home on Evering Road has five bedrooms, 2,566 square feet of space and a south-facing rear garden.
There’s off-street parking, period features, and a large basement with scope for conversion, subject to planning permission.
According to property records, the house has quadrupled in value since it was last sold for £500,000 in 2005. It is for sale with Keatons.
Knightsbridge, SW3
£2.4 million
Located opposite Harrods’ rear entrance on Hans Road, this two-bedroom leasehold flat is “ideally positioned for access to the exceptional shopping, luxury hotels, and renowned restaurants of Knightsbridge and Sloane Street”, say agents Berkshire Hathaway Home Services.
The flat covers 815 square feet over a single floor, with a small kitchen, two bathrooms and a balcony. There’s also air conditioning, a lift within the building, and a daily porter.
Kensal Rise, NW10
£2 million
Covering 2,085 square feet, this four-bedroom Edwardian terraced house on Herbert Gardens has been extended to the rear to create an open-plan kitchen diner which opens out onto the garden through full-height Crittall-style doors.
A garage and outbuilding at the end of the garden have the potential to be converted into additional living or studio space, say listing agents Winkworth, presenting a “rare and exciting opportunity for development”.
But from April 2028 onwards, the owners of this house will need to pay an annual surcharge of £2,500.
Golders Green, NW11
£2.15 million
Located at West Heath Place, a “luxury living” development off Finchley Road, this 2,160 square-foot garden flat is arranged over a single floor.
There are three bedrooms, of which the master suite has two dressing rooms and two ensuite bathrooms. Outside, there’s two underground parking spaces, a terrace, and direct access to the property’s communal gardens.
As part of the development, residents also have access to a gym and 24-hour concierge.
The apartment was last sold for £1.6 million in 2011, and is now for sale with Glentree.
Peckham, SE5
£2.4 million
On Peckham’s Bushey Hill Road, this architect-redesigned Victorian terrace covers almost 3,000 square feet over five floors.
The design has retained period details like the sash windows, shuttering and cornicing, while the kitchen has been extended into the garden to “allow a greater sense of flow between indoors and out,” says The Modern House.
There are five bedrooms, a games room in the basement, a conservatory and a modest rear garden.
Woodford Green, IG8
£2.5 million
Out in Zone 4, £2 million stretches further. This detached, mock-Tudor house on Monkhams Avenue has five bedrooms, 4,200 square feet of space, a heated swimming pool and a roof terrace.
Outside, there is off-street parking for multiple cars, secure gates, a garage – and an outbuilding in the garden with a snooker room, gym and shower room. The house is for sale with William Rose.
At £2.5 million, the owners of this property will need to pay an annual rate of £3,500 come 2028.
Hammersmith, W6
£2 million
This new-build flat occupies the ninth floor of Marquis House, close to Hammersmith station.
There are three bedrooms, 1,422 square feet of space and a small private balcony. Residents also have access to the development’s communal garden, 24-hour concierge and onsite gym.
The apartment is for sale with JLL Residential.
Stroud Green, N4
£2.2 million
This six-bedroom, double-fronted house on Mount View Road covers 2,672 square feet with a rear garden and period features.
It was last sold in 2005 for £805,000, according to property records, and is now for sale for £2.2 million with Hamptons.
