The Newshound

Burnham's Treasury considers slashing 'mansion tax' threshold to £1.5m, putting 271,000 homes at risk

From the Newshound archive · first published 20 September 2026 · last updated 21 September 2026.

John Healey, as Chancellor, faces a backbench revolt over plans to lower the mansion tax threshold to £1.5m, a move Treasury officials say could raise £800m a year.
John Healey, as Chancellor, faces a backbench revolt over plans to lower the mansion tax threshold to £1.5m, a move Treasury officials say could raise £800m a year.
'For Sale' boards outside a row of terraced houses, as tens of thousands of London homeowners face annual bills of up to £7,500 if John Healey cuts the mansion tax threshold to £1.5m.
'For Sale' boards outside a row of terraced houses, as tens of thousands of London homeowners face annual bills of up to £7,500 if John Healey cuts the mansion tax threshold to £1.5m.

Chancellor John Healey is actively debating whether to lower the mansion tax threshold from £2m to £1.5m ahead of the October 28 Budget, a move that would more than double the number of properties caught by the levy to around 271,000. The change is described as a "live discussion" inside the Treasury as Healey hunts for £10bn to plug a gap in the public finances, with borrowing costs already spiralling after the Iran war.

Under existing plans, homes valued above £2m will face annual charges of between £2,500 and £7,500 from April 2028, billed separately from council tax.

TV presenter Kirstie Allsopp warned the move would 'stop people adding value' and deter basic maintenance as owners scramble to stay under the threshold.

MoreEvening StandardRevealed: How London could be hammered with £624m 'mansion tax' on homes over £1.5mFinancial TimesLabour MPs warn against mansion tax change in Budgetlondoninsider.co.ukLabour Considers Lowering Mansion Tax Threshold To £1.5M, Threatening 271,000 Homes - londoninsider.co.uk
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