Land tax for homeowners will not rise as house prices have remained relatively stable, according to valuation experts.

And it may even fall at the top end of the housing market which has seen prices drop dramatically.

Government recently released the a new list of property values, replacing the 2004 document which determines how much land tax a property owner will have to pay.

Director of Land Valuation Chris Farrow and realtors said over the past five years, house prices have remained steady.

Mr. Farrow said: "The effect of the recession really began to affect the local property market in 2009 and there has been a reduction in demand for the top end properties commonly referred to as executive homes.

"These homes have seen reductions in their rental values, which in some cases in the 2009 Draft Valuation List are below their 2004 assessed value.

"That is to say that the rental values of these homes have dropped from their peak in 2008 to below their 2004 levels.

'The middle to low end rentals have not yet seen the reduced demand experienced by the executive homes and are generally holding over at their 2008 rental levels."

Steve Bowie, Manager of Professional Services at Rego Realtors, said: "Some of the values have gone down, certainly at the top end of the market for residential.

"We have seen values in the last six months to a year fall quite dramatically, houses which were getting $25,000 a month have dropped to $12,000 a month. Some people are paying less which will make the property more attractive.

"Obviously if the annual rental value (ARV) goes up or down, it will make it more or less desirable but of all the properties of the neighbourhood should go up or down.

"If you have a whole row of properties that are identical the impact should be minimal."

Land Tax is a property tax charged on all developed land throughout Bermuda with the rate set by the Finance Minister.

The rate is a percentage of the ARV of the property as opposed to the sale price of the house.

Seniors over 65 can qualify for a tax relief and must only pay land tax on properties they do not live in.

The ARV is determined by a land valuation officer based on location, quality and size of a property and the assessment may be higher or lower than actual rents paid for properties.

Mr. Bowie said most middle market homes would be affected and have remained "stable or static".

He also said if property owners disagree with the new ARV, they have until the end of the month to appeal it.

Susan Thompson, Agency Manager at Coldwell Banker Bermuda Realty, said: "The rise in taxes will not have an effect on the price of property on the Island as property in this market will sell at market price. i.e. the price that the customer is willing to pay and not a penny more.

"The same is true with rental prices. There is no way for the landlord to recoup this cost in rent if the market is not willing to pay higher prices."