UK house prices ‘bunching’ to avoid mansion tax
Financial Times
February 26, 2026
AI-Generated Deep Dive Summary
The UK housing market is experiencing a strategic shift as buyers and sellers adjust property prices to avoid new tax thresholds, particularly the mansion tax. This tactic involves setting asking prices just below government-defined limits to circumvent higher tax liabilities, with early indicators showing that properties are being marketed under these ceilings.
The government's introduction of increased thresholds has prompted significant changes in pricing strategies. Both buyers and sellers are aligning their valuations to stay beneath these limits, a trend that is already observable in the market. This adjustment underscores the financial incentive for avoiding higher tax burdens, particularly on more expensive properties.
From a business perspective, this shift highlights evolving market dynamics and potential implications for real estate transactions. The strategic pricing not only influences property values but also impacts transaction volumes and buyer behavior. While some may see this as an opportunity to secure deals below the taxed price bracket
Verticals
businessfinance
Originally published on Financial Times on 2/26/2026