On the proposals, a fall in prices after 2026 would not take your home out of a band on its own. Each home is valued once, as at 2026, and that value holds until the first revaluation in 2033. What can change a band is showing that the 2026 value was wrong, or, in some cases, a physical change to the home.
Why the value is frozen
Council tax works the same way, only more so: bands in England still rest on 1991 values. The surcharge uses a 2026 valuation and a five-year revaluation cycle, so the value that counts will be the 2026 figure for every bill from April 2028 to at least 2033.
That cuts both ways. A home that climbs above £2m after 2026 would not normally be caught before 2033, and one that falls below £2m would not normally leave.
What can change a band before 2033
- Correcting facts when the draft list is published in late 2027.
- A successful challenge showing the 2026 value was wrong, within the initial 8-month window.
- Physical changes. Under the proposals, a home that is significantly improved or extended after the surcharge starts would be revalued at the next revaluation or when it is sold, whichever is sooner. Homes split into flats or merged, and demolitions, are recorded by the Valuation Office, and homes built after April 2028 would be valued on completion or when first occupied. The final rules may differ.
Why this makes the 2026 evidence more important
If prices fall, owners will feel over-taxed, but a lower price in 2029 is not evidence about 2026. The only argument that works is about the home's value in 2026. That is why sales evidence from around 2026, and a record of how the home stood that year, are worth collecting now while they are easy to find.
And if prices rise?
The same logic applies. A home that was worth £1.9m in 2026 and £2.2m later should stay out until 2033. Keeping evidence of the 2026 value protects that position too.
Also asked
If my home is now worth less than £2m, do I still pay?
Under the proposals, yes, if the Valuation Office valued it at £2m or more as at 2026. Price movements after 2026 are not expected to change a band before the 2033 revaluation. The route is to show the 2026 value was wrong.
Will the thresholds rise with house prices?
The charges are proposed to rise with CPI inflation each year. The government has not said whether the £2m threshold or the band edges will move at the 2033 revaluation.
Last checked against the government's Budget documents and consultation response on 30 October 2026. The surcharge is being legislated in the Finance Bill 2026-27 and is not yet law. Some detail is still to come in regulations.