Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the new council tax surcharge bands on property prices at the thresholds of each band.

Various factors affect the sale price of residential properties. In its recent Economic and Fiscal outlook, the independent Office for Budget Responsibility forecast that house prices will rise every year, growing by ‘just under 3 per cent in 2025 and average 2 ½ percent annual growth from 2026’.

The policy costing for the surcharge assumes an average price impact on affected properties of 2.5% with greater effects around the band thresholds.