The Autumn Budget 2025 will go down in history for its unprecedented wave of leaks in the days and even minutes leading up to it. Now that the Autumn Budget has been delivered, we can look at what actually did – and didn’t – happen from a property point of view, and how these decisions might influence the local housing market as we move into 2026.
Below, we break down the five biggest changes and what they mean for buyers, sellers, and landlords.
1. Council Tax and the much-rumoured Mansion Tax
The largest property-related leak before the Budget was the potential reform of Council Tax bands and the introduction of a new mansion tax. The rumours were true, but not quite as dramatic as expected.
The new Higher Value Council Tax surcharge will start at £2,500 per year for homes valued over £2 million, rising to £7,500 for properties over £5 million.
Importantly, this means homeowners with properties worth between £500,000 and £2 million – a sizeable section of the local market – will not be affected.
2. Stamp Duty
Many expected Stamp Duty reform to help stimulate the housing market, especially for first-time buyers and those trapped by high transaction costs. There was even talk that a mansion tax could replace Stamp Duty at the upper end of the market.
In the end, no changes were announced. Buyers will continue to navigate the existing Stamp Duty thresholds into 2026.
3. Capital Gains Tax
While Capital Gains Tax does not apply to a primary residence, it is charged on second homes and buy-to-lets. After last year’s CGT rise, many were braced for further adjustments – including potential changes to main residence relief.
Instead, the Autumn Budget made no amendments in this area, which will be welcome news for both landlords and second homeowners.
4. Income Tax on earnings
Despite widespread rumours, Income Tax rates were not raised. However, the freeze on personal allowances and thresholds, already in place until 2027/28, has now been extended to 2030/31.
This form of fiscal drag effectively raises taxes each year and will influence affordability for anyone looking to buy or move home.
5. Income Tax on savings and property income
Landlords were expecting potential National Insurance changes on rental income. Instead, the Chancellor announced a 2% increase on the basic, higher and additional rates of Income Tax charged on both savings and rental income.
For buy-to-let landlords, this will feel like yet another financial pressure following previous tax reforms.
How the Autumn Budget might affect the property market in 2026
Labour previously committed not to raise Income Tax, National Insurance or VAT for working people. However, the combination of frozen thresholds and revised tax rates means the Autumn Budget introduces around £26 billion of tax rises.
For households, this will mean reduced disposable income and potential caution when considering major financial decisions such as buying or moving home.
What it means for homebuyers
The weeks of speculation before the Autumn Budget created hesitation among buyers and sellers. Now that the announcements are confirmed, buyers can plan with more confidence.
Many experts predict that interest rates may be cut again at the next Bank of England meeting on 18 December, and overall mortgage costs are expected to ease in 2026.
The new Higher Value Council Tax surcharge will affect only a very small segment of the market. In fact, it may increase demand for prestige homes under £2 million.
What it means for sellers
Regardless of wider economic conditions, well-presented and accurately priced homes continue to attract strong interest. With the Autumn Budget now behind us, the market has regained clarity.
If you’re considering selling, now is an ideal moment to request an updated market valuation so you can make informed decisions going into the new year.
What it means for landlords
The 2025 Budget marks a significant moment for the buy-to-let sector. The increase in Income Tax on property income adds further pressure to landlords already navigating rising costs, changing legislation and the upcoming Renters’ Rights Act, which comes into effect in England on 1 May 2026.
This is a crucial time for landlords to review their portfolios and consider whether to expand, restructure, or sell.
We hope you’ve found our Autumn Budget 2025 property roundup helpful. If you know someone who might benefit from understanding its impact on the local housing market, feel free to share this article with them.
Please note: Some taxes differ outside England. Stamp Duty in Scotland and Wales, and Income Tax in Scotland, are set by their respective governments.
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