£2m-plus homes sell at deeper discounts amid mansion tax concerns

New figures suggest homes worth £2 million or more have faced steeper discounts and weaker demand amid concern about Labour’s planned annual mansion tax. The data points to a slowdown in the high-value market, though it does not by itself establish that the proposed tax caused the price changes.

The average discount on these homes was £284,583 so far this year, compared with £244,000 in 2025; homes sold from April to June had the largest average discount, at £315,119. They took 86 days on average to find a buyer, against 41 days for other homes, and sellers achieved 90.5 per cent of their initial asking price in the third quarter. The proposed charge, due from April 2028, is £2,500 to £7,500 a year for homes valued at £2 million or more; ministers are also reportedly discussing lowering the threshold to £1.5 million, which could affect 271,000 homes.