Autumn Budget 2025 – What Landlords Need to Know

The Autumn Budget has landed, and after months of rumours and speculation, we finally have clarity. Rachel Reeves has introduced several tax changes, but the vast majority of landlords and homeowners will feel far less impact than expected.

Here’s a breakdown of the key points and what they mean for the property market.

1. No new annual property tax for homes over £500,000

This was the big fear hanging over the market. Buyers froze, sellers hesitated, and activity stalled while everyone waited for answers.

The good news?
The widely rumoured annual proportional property tax, aimed at homes over £500,000, is not happening.

2. A new ‘mansion tax’ for homes worth over £2m

Instead of taxing £500k–£2m homes, the Chancellor has focused on the very top end of the market.

A new Council Tax High Value Supplement will apply to homes valued above £2m.

Key points:

• It affects around 0.5% of UK homes

• Around 85% of these properties are in London and the South East

• Estimated additional cost: around £2,500 per year for a £2m home, and more for properties above £5m

This won’t impact the majority of landlords, but it may cause some disruption at the luxury end of the market as owners reassess their costs.

3. No changes to stamp duty

Stamp duty thresholds haven’t been updated since 2014, even though house prices have risen nearly 50% during that time. More buyers are slowly getting pushed into higher stamp duty brackets, especially in the South.

But for the North West and North Wales, this is actually good news:

• The current low thresholds help first-time buyers and average home movers

• Buyers pay far less stamp duty here than in London or the South East

• This keeps our local market more affordable and more active

4. Landlords will see a 2% rise in property income tax (from April 2027)

Reeves has confirmed that property income tax rates will increase by 2% across all bands:

• Basic rate → 22%

• Higher rate → 42%

• Additional rate → 47%

This comes on top of:

• The Renters’ Rights Act changes

• New energy efficiency requirements

• Last year’s increase in stamp duty surcharge for additional homes (3% → 5%)

It’s another layer of pressure on landlords, and planning ahead is going to be essential.

5. Stability returns — and that’s what the market needed

Most of the slowdown over the past few months came from uncertainty, not tax rises. Buyers and sellers simply didn’t know what Reeves would do.

Now that the Budget is out, the market can breathe again.

For most homeowners and landlords, the changes are far lighter than expected. Confidence should return, and we’re likely to see activity pick up as we move into 2026.

If you’re considering selling, refinancing, expanding, or simply reviewing your portfolio, the coming weeks are a good window of opportunity.