Chancellor Rachel Reeves delivered the Autumn Budget 2025 on Wednesday, outlining several key measures that could have a notable impact on the UK housing market in the years ahead. Here’s a breakdown of what these changes mean for homeowners, buyers, and investors alike.
Mansion Tax
From April 2028, homes valued at over £2 million will be subject to a new ‘mansion tax’, introducing an additional levy on high-value properties. This charge will be applied on top of standard council tax and will be payable by the property owner, not the occupier.
Under the new system, properties worth over £2 million will face an annual surcharge of £2,500, rising to £7,500 for those valued above £5 million. The measure is designed to increase revenue from the luxury housing sector and ensure owners of the highest-value homes contribute more towards local services.
No Stamp Duty Changes
What is stamp duty? - Stamp Duty Land Tax (SDLT) is charged on most purchases of houses, flats, and land in England and Northern Ireland once the purchase price goes over a set threshold. Scotland and Wales have their own similar taxes: Land and Buildings Transaction Tax (LBTT) in Scotland and Land Transaction Tax (LTT) in Wales.
The Autumn Budget confirmed that there will be no changes to Stamp Duty, despite months of speculation and calls for reform from across the property industry. This means that anyone purchasing a home in England will continue to pay Stamp Duty under the existing rules. From 1st of April 2025, the following thresholds apply:
- £0 – £125,000: 0%
- £125,001 – £250,000: 2%
- £250,001 – £925,000: 5%
- £925,001 – £1.5 million: 10%
- Over £1.5 million: 12%
There are also a series of reliefs and exemptions.
Addition Income Tax for Landlords
There had been speculation that landlords might start paying National Insurance on rental income, but instead the Chancellor has opted to raise the basic, higher and additional property income tax rates.
From April 2027, tax on landlords’ rental income will increase by 2 percentage points, taking the property income tax rates to 22%, 42% and 47% for basic, higher and additional rate taxpayers.
Overall, this Autumn Budget signals a clear focus on raising revenue from the top end of the market and from landlords, while leaving mainstream Stamp Duty unchanged for now. For buyers and sellers, it means the current transaction framework remains familiar in the short term, but high-value homeowners and landlords will need to factor in increased ongoing costs when planning their next move. Anyone considering buying, selling or investing over the coming years may benefit from early professional advice to understand how these changes could affect their budget and long‑term property plans.
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Source: Rightmove & UK Government website
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