What the Latest Measures Mean for the UK Housing Market

Autumn Budget 2025: What the Latest Measures Mean for the Housing Market

The Chancellor, Rachel Reeves, has delivered the Autumn Budget, outlining several updates that will influence the residential property landscape in the years ahead. While much anticipation surrounded possible stamp duty changes, none have been introduced. Instead, attention is centred on a new levy for higher value homes, alongside an additional 2% income tax on rental income for landlords, changes that will be felt across parts of the London market.

A New Mansion Tax for Homes Above £2 Million

From April 2028, properties valued above £2 million will be subject to an annual mansion tax, paid by the homeowner. Homes between £2 million and £5 million will incur a £2,500 yearly charge, rising to £7,500 for those exceeding £5 million. This charge will be applied in addition to existing council tax.

Although only a small proportion of the national market falls within this price bracket—less than 0.5% of agreed sales this year, the sector has already shown early signs of cooling. Sales agreed above £2 million are down 13% year-on-year, suggesting buyers and sellers have been adjusting expectations ahead of the confirmed policy.

When Will the Mansion Tax Take Effect?
The tax will be introduced in April 2028.

How Will It Affect Homeowners?
Charges will be applied according to the property’s valuation.