This morning’s Autumn Budget was always going to land heavily on the housing market, and it really has. Here is what it means in plain English for property professionals across the UK. First, the new so called “mansion tax”. From April 2028, homes valued over £2 million will face a new annual “super council tax” on top of existing council tax. The charge will be banded by value and will rise with inflation. In practice, this is likely to hit London and the South East hardest, put a psychological ceiling just below the £2 million mark, and push more older or long term owners to consider downsizing. Prime and second home markets, which were already under pressure, now have another headwind to deal with. Second, landlords are being asked to pay more. From April 2027, the tax you pay on property income will rise by 2 percentage points. The basic rate will move to 22 per cent, the higher rate to 42 per cent and the additional rate to 47 per cent. This comes on top of previous changes such as the restriction of mortgage interest relief and higher Stamp Duty. The direction of travel is clear. Owning rental property in your own name becomes less attractive every year and many in the industry expect more landlords to sell, which risks further reducing rental supply and putting upward pressure on rents. For agents, developers, investors and landlords on UK Homes Network, these changes will shape pricing, strategy and deal structures over the next few years rather than just the next few months. High value owners are already asking what this means for them. Landlords are looking again at their numbers, their structures and their long term plans. We will keep following the detail and sharing practical insight inside UK Homes Network.

Posted by UK Homes News at 2025-11-26 14:45:11 UTC