Ordinary London home owners are set to be hammered by Rachel Reeves’ Mansion Tax and skyrocketing council tax. But the capital will prove resilient, says James Evans

It’s going to be an interesting year ahead for the capital’s property owners and how they deal with the fallout from the Budget.

Central to this is how London property owners navigate the so-called Mansion Tax on properties valued at £2m and above. Which incidentally will only raise £400m for the government’s coffers.

The annual charge, proposed in the Autumn Statement will be added on top of council tax which will also increase from 2028.

It’s a body blow for London homeowners. Particularly given the Capital and south east are home to 85 per cent of properties meeting this value. However, talking to our residential property owners and investment clients, our view is that the outlook for the London property market will remain steady into 2026.

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