The UK Autumn Budget 2025 has finally brought some clarity to the property market after months of speculation and uncertainty. For homeowners, buyers, and landlords alike, there has been plenty of concern over potential tax changes, shifts in property prices, and the broader economic outlook. Headlines have focused on a new “mansion tax” targeting high-value properties, and proposed changes to the taxation of rental income for landlords. Yet, as our Managing Director, Yasser Elkaffass, points out, for most of the market, nothing too much has changed. While the changes will impact certain segments, the Budget delivers stability and predictability—something that is crucial in helping buyers and sellers make informed decisions.

Mansion Tax: More High-Value Properties Coming to Market?

A key announcement from the Chancellor is a council tax surcharge on homes valued over £2 million, which will take effect in 2028. This new levy could encourage cash-poor, equity-rich homeowners to consider selling sooner, potentially increasing supply in the £2m+ bracket. Yasser notes that this may create opportunities for buyers looking at high-end homes over the next few years.

Despite the focus on luxury properties, for the vast majority of homeowners and buyers in the mid-market, the housing market remains stable. There is no sudden tax shock, no immediate change in day-to-day property costs, and no reason for panic. Stability is always positive for the market—it allows transactions to proceed with confidence and helps buyers and sellers plan their next steps.

Landlords Face Higher Taxes

The Budget also delivers changes that will affect landlords, including those represented by the NRLA. Many landlords are already managing the impact of previous Stamp Duty increases and the phasing out of mortgage interest relief on buy-to-let properties. The Chancellor has signalled that landlords should “pay their fair share” of taxation, but rather than addressing the underlying National Insurance imbalance between landlords and tenants, the government has increased the income tax rates for rental income.

From April 2027, rental income will face:

  • Basic rate: 22%

  • Higher rate: 42%

  • Additional rate: 47%

These changes will increase the tax burden on landlords, adding another layer of consideration for property investors.

Stability and Confidence in the Market

Yasser emphasises that despite the changes, clarity and predictability are positive for the market. The mansion tax may increase supply at the top end, while mid-market property remains largely unaffected. Buyers and sellers in this segment can continue with confidence, reassured that there are no immediate shocks on the horizon.

Final Thoughts

Today’s Budget is more of a reset than a revolution. It brings stability after months of uncertainty, while signalling that high-value homeowners and landlords will face higher contributions in the future. At Adam Hayes Estate Agents, we see this as a moment to reassure clients and guide them confidently through the market.

Whether you are considering mid-market properties or monitoring £2m+ homes, the 2025 Budget provides clarity, stability, and a framework for informed property decisions.