The article reports speculation that the forthcoming Budget could increase the High Value Council Tax Surcharge, also referred to as the Mansion Tax, beyond the rates previously announced for properties worth £2 million or more in England. It also suggests possible changes to Capital Gains Tax that could affect landlords, while noting that a Stamp Duty cut appears unlikely.
The article examines the Government’s planned cap on most existing residential ground rents in England and Wales, moving them to £250 a year before reducing them to a peppercorn after 40 years under the forthcoming Commonhold and Leasehold Reform Bill. It argues the reform may ease sales and mortgage issues linked to onerous ground rents, but could also reduce freeholder income, create fairness concerns between leaseholders, and affect valuation and financing assumptions.
Zoopla says flats are currently offering better relative value than houses, but demand remains weak because buyers are sensitive to price, running costs and leasehold-related uncertainty. The article also notes that government leasehold reforms are intended to improve transparency and strengthen leaseholder protections, although campaigners argue progress has been too slow.
Zoopla says flat sales are taking longer, with around four in five flats not selling within six months, reflecting weaker demand and greater uncertainty in the sector. The article links this to leasehold complexity, service charges, ground rents, building safety concerns and lender caution, with the flat-house price gap now at a three-decade high.
