The proposed surcharge would apply to residential properties in England valued at £2 million or more from April 2028. While the UK Government expects fewer than 1% of homes to be affected, Propertymark believes important practical issues surrounding valuation, enforcement and liability must be addressed before the scheme can be introduced.
Valuing homes presents a major challenge
Determining a property's value requires a full inspection by a qualified surveyor. However, Propertymark warns there are unlikely to be enough qualified valuers to assess the estimated 165,000 affected properties before the surcharge is due to take effect. We also believe local authorities would require significant additional funding and specialist resources to administer the scheme effectively.
Greater clarity for landlords
Who should be responsible for paying the surcharge where a property is rented—a key question that needs clarity, and we are urging the UK Government to consider the implications.
Rather than introducing a fixed approach, Propertymark recommends allowing landlords to decide whether they or their tenants are liable, reflecting the flexibility which already exists for council tax arrangements. The potential impact on institutional landlords and the supply of high-value rental homes has not been fully considered.
Practical reforms are essential
Alongside our concerns about implementation, Propertymark supports deferral arrangements for eligible homeowners but believes the proposed income and savings thresholds should be reviewed to protect lower-income households living in high-value homes.
Exemptions and discounts for a range of specialist property types, including purpose-built student accommodation, care homes and refuges for people fleeing domestic abuse, are also areas Propertymark supports.
However, we do not support proposals to introduce an additional surcharge for non-UK resident owners, warning that doing so could discourage international investment in the UK's high-value housing market.
A workable approach
Propertymark believes the Government must resolve fundamental questions around valuation, liability, enforcement and resourcing before introducing HVTS. A clear, practical framework will be essential to ensure the policy is fair, proportionate and capable of effective implementation.
