‘I would sell it for £1 if I could. It’s like being in prison’: MARK PALMER lays bare the true scale of the UK’s unsellable homes crisis – from retirees who can’t downsize to the flat owners stuck in their starter properties
The Daily Mail's Mark Palmer reports on Britain's "unsellable homes" crisis, illustrated by Kate Williams, a 67-year-old widow trying to sell her five-bedroom detached house near Stamford on the Northamptonshire/Lincolnshire border. After her husband's death from dementia earlier this year, she wants to downsize to travel and be closer to her five grandchildren, but has found no buyers despite repeated price cuts, which she blames on government economic mismanagement and uncertainty over new property taxes.
The house, valued at £1.15–1.2million before her husband's death, was listed at £1million in early May but attracted no interest; a cut to £950,000 produced just one viewing, prompting a further reduction this week to £900,000. Williams points to fears over the incoming "mansion tax", set to take effect from April 2028 with annual charges of £2,500 to £7,500 on homes worth over £2million (with speculation the threshold could fall to £1.5million), as well as broader uncertainty about Andy Burnham's plans to reform property taxation, including a possible land value tax to replace stamp duty. The Prime Minister has ruled out an overhaul of property taxes in the Budget due on 28 October, though the Institute for Fiscal Studies has criticised stamp duty as one of the most economically damaging taxes.
- Widow can't sell £1m+ house despite cutting price to £900,000
- Mansion tax fears and political uncertainty blamed for stalled sales
- Government rules out property tax overhaul before October Budget
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Homes can be hard to sell when buyers are cautious, prices are changing or people are unsure about future costs. In England, buying a home usually involves stamp duty, a tax based on the purchase price, while owners also pay council tax.
Some owners want to move to a smaller home as their circumstances change, while others bought flats as first homes and hope to move on. If they cannot find a buyer at a price they can accept, they may feel stuck and delay plans such as moving nearer to family.
Debate about property taxes adds to uncertainty for buyers and sellers. Proposals discussed include charges on higher-value homes and changes to stamp duty, although the details and effects depend on what policies are adopted.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Property wealth represents accumulated value significantly enhanced by public infrastructure and services, and proponents of mansion taxes and land value tax reform argue such measures could fairly contribute to public finances whilst potentially reducing reliance on economically damaging taxes like stamp duty and income tax. They contend that addressing property affordability through structural reform, even if creating temporary market uncertainty, serves the broader interest of funding public services and promoting economic efficiency.
The case against
Critics argue the UK already levies substantial property taxation, and that additional levies risk depressing the housing market, discouraging transactions and investment that generate economic activity, and unfairly burdening retirees and middle-class savers whose primary asset is their residence rather than liquid income. They contend that uncertainty over potential tax changes is itself economically damaging, creating the market paralysis evident in cases like Kate Williams's, and that clarity and stability would better serve both households and broader economic health.