Autumn Budget 2025: What the Latest Changes Mean for Homeowners and the Property Market

The Chancellor’s Autumn Budget has now landed, bringing with it several long-awaited updates for the housing market. While some of the biggest rumours, including changes to stamp duty, didn’t materialise, there are still a few key points worth understanding whether you’re buying, selling, or investing.

Here’s a clear breakdown of what was announced, and what it could mean for homeowners in the coming years.

A New ‘Mansion Tax’ for Homes Over £2 Million (From 2028)

The headline announcement this year is the introduction of a new annual surcharge for higher-value properties.

Homes valued above £2 million will pay an additional yearly charge, on top of standard council tax:

Annual surcharge bands:

  • £2m – £2.5m: £2,500

  • £2.5m – £3.5m: £3,500

  • £3.5m – £5m: £5,000

  • £5m+: £7,500

The tax will be paid by the property owner, not the occupier, and valuations will be reviewed every five years.

Who will this affect?

Nationally, only a very small percentage of properties fall into this category, but the impact will be felt more heavily in London and the South East where prices are highest. Sales of homes over £2 million have already slowed across the UK due to speculation, and this announcement may continue that trend.

While most regional markets, including Derbyshire, remain largely unaffected, a slower top-end market can create a ripple effect throughout the wider housing chain.

Landlords Face a 2% Increase in Income Tax (From 2027)

From April 2027, landlords will pay an additional 2% income tax on rental income.

New tax rates will rise to:

  • 22% for basic-rate

  • 42% for higher-rate

  • 47% for additional-rate

What does this mean?

Landlords’ net earnings will reduce, and this may lead to:

  • Some increasing rents to cover rising costs

  • Others reviewing whether their portfolios remain viable

  • Potential reduced rental supply if smaller landlords leave the market

This continues a trend of tightening rules and rising operating costs in the private rental sector.
Stamp Duty: No Changes Announced

Despite months of speculation, there were no changes to stamp duty.
This provides more stability for buyers, particularly those who were holding off making decisions while awaiting potential reforms.

How Quickly Will We See the Impact?

Although the Budget outlines major policy shifts, most changes won’t come into effect for several years:

Landlord tax increase: April 2027

Mansion tax: April 2028

For buyers and sellers, this means there’s time to plan, and importantly, the end of speculation should bring some confidence back to the market, especially after a quieter period at the higher end.

What Does This Mean for Home Movers in Our Region?

For areas like Derbyshire and the surrounding regions, the direct impact is limited. The vast majority of homes sit well below the £2 million threshold, and the stability around stamp duty is likely to be welcomed by everyday movers.

However, national sentiment does influence buyer behaviour. With clarity now in place, the market may see:

  • More confidence returning to transactions

  • A steadier pace of enquiries and viewings

  • Less hesitation among buyers who were waiting for the Budget

For landlords, the industry will be watching closely to see how the new tax environment shapes the rental market into 2027.

Thinking of Moving?

Whether you're planning your next move, weighing up a future sale, or simply curious about your home's value, this Budget marks an important moment of clarity after months of uncertainty.

If you'd like honest, local guidance or want to explore what’s available across our current developments, our team is here to help.

David Coslett