A slump in high‑value home sales has cut projected revenue from England's so‑called mansion tax by almost £30mn. Estate‑agency data show fewer properties now exceed the £2 million threshold, trimming the tax base that policymakers expected when the levy was introduced.

The shortfall stems from a broader slowdown in the luxury property market, where falling buyer confidence and tighter mortgage conditions have pushed many would‑be million‑plus purchases into lower price bands. Analysts note that the tax's effectiveness hinges on a steady flow of ultra‑high‑end transactions, which the current market cannot sustain.

With revenue now well below original forecasts, local authorities face tighter budgets at a time when housing affordability pressures are rising. The gap underscores the risk of relying on a narrow tax on elite assets for fiscal planning, and forces officials to reconsider how to fund services without further burdening the property market.