Rachel Reeves ‘destroying’ key UK market as Brits scared of recent tax | Politics | News | EUROtoday
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Ms Reeves has been criticised within the face of grim figures. (Image: Getty)
Rachel Reeves has been accused of destroying the housing market as new figures paint a grim image. Data from property agent agency Savills prompt prime nation home costs have fallen 7.8% – wiping £363,500 off the typical worth and signalling a slowdown on the high finish of the market. In addition, new figures from wealth administration firm Saltus prompt that is feeding right into a rising lack of confidence in property amongst rich householders.
Data from the agency’s Wealth Index – a examine of two,000 UK high-net-worth people – discovered that 46% are involved in regards to the future worth of their main residence, rising to 53% in London. Younger high-net-worth people (HNWIs) – aged 25 to 44 – are probably the most anxious, at 57%, consultants added. Meanwhile, 44% of Labour-voting HNWIs reportedly remorse their vote, citing the brand new high-value property tax surcharge.
Dubbed a “mansion tax”, the annual, recurring cost will likely be rolled out in 2028.
READ MORE: Beloved British vacation chain set to axe 250 jobs as tax hikes chunk
David Simmonds MP slammed Ms Reeves. (Image: UK Parliament)
The payment will likely be paid alongside current council tax and can vary from £2,500 to £7,500, primarily based on 2026 property valuations.
David Simmonds, Conservative shadow housing minister, informed the Express: “Just 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.
“Only the Conservatives have a plan to unlock our housing market by scrapping Stamp Duty on primary residences and deliver a stronger economy.”
Henrietta Grimston, chartered monetary planner at Saltus, mentioned: “What 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.
“For 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.”
Ms Reeves’ November 2025 Budget doc acknowledged 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 likely be used to help funding for native companies, with additional consideration by means of the following spending evaluation 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.”
https://www.express.co.uk/news/politics/2192306/rachel-reeves-destroying-key-uk-market