LONDON, August 24, 2026, 18:13 BST
- HMRC states that the majority of homes valued at over £2 million will be assessed without an in-person inspection.
- The surcharge begins at £2,500 in April 2028 and increases to £7,500.
- According to government estimates, each impacted home would face an annual tax of around £2,606.
- Rightmove declined 1.37% to 504 pence, underperforming a climbing FTSE 100.
HMRC stated that the majority of properties potentially affected by England’s new high-value council tax charge will be evaluated without inspectors visiting in person. This statement was issued after reports at the weekend suggested inspectors may request access and could impose fines on those who decline.
Administrative risks have subsided, but the financial burden remains unchanged. Starting in April 2028, homeowners with properties worth £2 million or above will be required to make yearly payments.
This is significant for Rightmove plc LON:RMV, as its subscriber base relies on property transactions. The UK government’s projected £430 million in receipts from approximately 165,000 homes translates to an average of £2,606 per home. For a property valued at £2 million, this represents about 0.13% of its yearly value.
| 2028 home-value band | Annual surcharge | Tax at band floor | 2.5% price effect at floor |
|---|---|---|---|
| £2.0m–£2.5m | £2,500 | 0.125% | £50,000 |
| £2.5m–£3.5m | £3,500 | 0.140% | £62,500 |
| £3.5m–£5.0m | £5,000 | 0.143% | £87,500 |
| Above £5.0m | £7,500 | 0.150% | £125,000 |
A spokesperson for HMRC stated that professional valuers draw on up-to-date, easily accessible data. “In the vast majority of cases,” assessments will be completed remotely, with no need to inspect properties in person. The proposed valuation differs from the council tax bands, which are still based on valuations from 1991. HMRC and Valuation Office Agency
Rightmove shares ended down 1.37% at 504 pence on Monday. The FTSE 100 finished up 0.35%. Volume reached 2.5 million shares, coming in at under half the 50-day average.
| Rightmove market marker | August 24, 2026 | Investor read |
|---|---|---|
| Closing price | 504p | Fell 1.37% |
| FTSE 100 | 10,854.32 | Gained 0.35% |
| 52-week high | 775p | Shares trading 35.03% below high |
| Daily volume | 2.5m | Compares to 5.3m daily average |
| Market value | About £3.75bn | Reflects latest share count |
The tax is not the sole factor weighing on housing. Rightmove reported that asking prices in August declined by 2% to £364,999, marking the sharpest fall in almost eight years. Mortgage rates increased to 5.09% from 4.92% in July.
Prime London remains under pressure. Home values in inner London declined 8.3% in the 12 months to June. Certain central neighborhoods saw decreases of more than 20% following further tax adjustments that hit demand at the luxury end.
| Rightmove H1 2026 | Value | Year-on-year change |
|---|---|---|
| Total revenue | £225.8m | up 7% |
| Agency revenue | £163.9m | up 9% |
| New Homes revenue | £38.2m | up 2% |
| Underlying operating profit | £155.1m | up 3% |
| Underlying EPS | 15.6p | up 6% |
| New Homes developments | 2,766 | down 6% compared with June 2025 |
Agency contributed 72.6% of revenue in the first half, while New Homes accounted for 16.9%. As a result, estate-agent spending serves as the more direct tax transmission path, although extended selling periods may boost uptake of premium listings.
Chief Executive Johan Svanstrom stated that present challenges in New Homes volume have not diminished his optimism for 2026. However, Rightmove lowered its full-year revenue growth forecast to a range of 6%-8%, down from the earlier 8%-10% outlook set in July.
| Analyst | Rating | Target | Upside/downside vs 504p |
|---|---|---|---|
| RBC Capital | Buy | 675p | +33.9% |
| Berenberg | Buy | 575p | +14.1% |
| UBS | Hold | 490p | −2.8% |
| Citi | Hold | 486p | −3.6% |
| Barclays | Sell | 460p | −8.7% |
| JPMorgan | Sell | 429p | −14.9% |
The crucial figure stands at 2.5%. Officials estimate this price impact amounts to £50,000 for a property worth £2 million. That represents two decades of the minimum yearly surcharge prior to discounting, illustrating how upcoming taxes may be swiftly reflected in current list prices.
Investors are turning attention to forthcoming specific valuation guidelines and any feedback from the consultation process. Edinburgh is set to hold a vote on August 27 regarding a distinct second-home premium, maintaining property taxes as a key topic.
Risks: HMRC has yet to complete the implementation specifics. The surcharge impacts under 1% of homes in England, and Rightmove generates ongoing fee income instead of relying on transaction-based commissions. Should high-end sales weaken, increased valuation complexity may boost demand for the company’s data.
Related articles: Real Estate
