Prime London homeowners are braced for steep increases in annual property taxes after last month’s Autumn Budget introduced a new High Value Council Tax Surcharge.
Analysis by Jefferies London indicates that the levy will push yearly bills sharply higher across the capital’s wealthiest postcodes, with the biggest rises concentrated at the top end of the market.
The research compared existing council tax charges across Bands F to H in key prime boroughs and modelled how the new surcharge will inflate annual costs across different property value thresholds.
The results show that owners of £5 million-plus homes in particular will see the most dramatic changes.
BIG RISES
In Westminster – the borough with the highest projected impact – the average annual bill for a £5 million property is set to rise by more than fourfold once the surcharge is applied.
Other prime areas, including the City of London, Hammersmith and Fulham, Kensington and Chelsea, and Camden, are also expected to see substantial uplifts.
Even at lower value bands within the surcharge thresholds, the increases remain significant. Properties valued between £2 million and £2.5 million will face average rises ranging from 70% in Camden to 146% in Westminster.
MAJOR SHIFT
Damien Jefferies (main picture, inset), Founder of Jefferies London, says: “The new mansion tax surcharge represents a major shift in the cost of owning a high-value home in London. When added to existing council tax, the increases are substantial, especially at the top end of the market where annual bills will now rise by several hundred percent.
“Prime buyers already shoulder the largest Stamp Duty Land Tax liabilities and the highest transaction costs.
“Adding such a significant recurring charge risks undermining confidence in a market that plays an important role in supporting the wider London economy. What the market needs is clarity and stability, not continual layering of new costs.”
