Council tax calculator map shows UK postcodes and areas hit by £7,500 hike | Politics | News
The new council tax map shows where Rachel Reeves’ new rise will affect across the UK. In today’s Budget the Chancellor announced an increase in council tax for homes worth more than £2 million; This tax is also called ‘mansion tax’.
An annual surcharge of £2,500 will be charged for properties priced between £2 million and £2.5 million; It will go up to £7,500 for homes worth more than £5 million. This is in addition to normal council tax bills. Real estate values will be determined not according to the last purchase transaction, but according to new valuations made by the Valuation Office to reflect their values in 2026. The new policy, which will come into force in April 2028, is estimated to affect approximately 140,000 homes. London will be the worst hit, with 82% of recent property sales over £2 million taking place in London. The Office for Budget Responsibility said the policy would raise £400 million for the Treasury by 2031. During his budget speech, Reeves called out the injustice of the current system, saying a band D house in Darlington, Country Durham, pays £300 more council tax than a £10 million house in London’s Mayfair.
Industry experts have expressed concerns about the valuation process. Hamptons estate agent Aneisha Beveridge said: “High-end homes are notoriously difficult to value accurately – around 30% of properties in England have not changed hands since Land Registry records began in 1995, making comparables scarce.
“This increases the risk of disputes and appeals, particularly where small differences in value can push a property above the £2 million threshold. Combined with the potential for a ‘cliff edge’ effect, these valuation hurdles can create short-term uncertainty.”
There are also concerns about how the new policy will affect retirees living in homes that have increased in value. The Telegraph found that areas with a concentration of homes worth £2 million also have a high proportion of residents over the age of 65.
Lucian Cook, head of housing research at Savills, said the change would also affect second home owners. He said: “It is likely to have a disproportionate impact on second home markets, which are already dealing with the increased stamp duty surcharge and the doubling of council tax.”
The government has said there will be consultations on the new policy, so details have not yet been confirmed. It has not yet been announced where the other groups will sit.
While the normal council tax will go to local governments, the surcharge will go to the central government. This tax will be collected on less than the top 1% of properties.
