The Latest From the Autumn Budget 2025

It’s a long-awaited Budget, back again with changes for the housing market and movers. We’ll cut right to the updates and what they mean for you.  

Mansion tax introduced on properties worth more than £2m 

It was expected – the mansion tax has been introduced. The new tax will hit owners of properties over £2m from April 2028. It’ll be introduced as a council tax surcharge and is expected to raise £400m a year by the end of the decade. 

How will it work? From April 2028, owners of properties identified as being valued at over £2m (in 2026 prices) will be liable for a recurring annual charge which will be additional to existing council tax liability. 

There will be 4 price bands with the surcharge rising from £2,500 for a property valued in the lowest £2 million to £2.5 million band, to £7,500 for a property valued in the highest band of £5 million or more, all uprated by CPI inflation each year.  

Stamp duty remains unchanged 

While there were predictions that an annual property tax would be introduced for homes valued above £500,000, this was not mentioned. It was thought that this could either replace or sit alongside SDLT, turning a large one-off payment into a recurring yearly payment based on property value.  

There’s no change to stamp duty, meaning that many buyers in lower value housing markets will only pay modest amounts of stamp duty. 

Higher property income tax for landlords 

Landlords should prepare to pay more property tax from 2027. The Budget confirmed a 2% increase to the basic, higher, and additional rates of property income tax from April 2027. The new rates will be 22%, 42%, and 47% respectively. 

It’s important to note that landlords operating through limited companies will be unaffected. However, it will impact individual landlords who make up the bulk of the market and who are already squeezed by higher borrowing costs and previous tax changes. It’s hard to say what will happen, but we may expect a reduction in rental supply. 

Tax rates on property, savings, and dividends 

Tax rates on property, savings and dividend income will rise by two percentage points, chancellor Rachel Reeves said. 

She told the Commons: “Currently, a landlord with an income of £25,000 will pay nearly £1,200 less in tax than their tenant with the same salary because no National Insurance is charged on property, dividend or savings income. 

“It’s not fair that the tax system treats different types of income so differently and so I will increase the basic and higher rate of tax on property, savings and dividend income by two percentage points, and the additional rate of tax on property and savings income by two percentage points. 

“Even after these reforms, 90% of taxpayers will still pay no tax at all on their savings.” 

Find out more 

Of course, the Autumn Budget of 2025 also released more changes that may impact your finances. Check out the full summary here.