The Chancellor's 2025 Autumn Budget has introduced targeted measures affecting specific segments of the property market. Whether you're considering your next purchase or managing a rental portfolio, understanding these changes is essential for making informed decisions in the months ahead. 

Stamp duty confirmed 

The significant news for most buyers is the confirmation that the existing stamp duty system remains completely intact. There will be no annual tax on properties above £500,000, bringing relief to roughly 210,000 homes currently on the market above this threshold. 

For those planning to purchase properties or investment homes, the unchanged stamp duty structure provides clarity after months of speculation. First-time buyers continue to benefit from existing thresholds, whilst those adding to portfolios work within the established framework that includes last year's adjustment on additional homes (from 3% to 5% surcharge). 

New taxation measures for landlords 

The Budget has addressed taxation on rental income, with property income tax rates increasing by 2 percentage points from April 2027. Basic rate moves to 22%, higher rate to 42%, and additional rate to 47%. This represents a notable shift in how rental income will be taxed going forward. 

Landlords across all income levels will face these adjusted rates on their property income. This affects monthly cash flow and overall returns, particularly when considered alongside ongoing regulatory developments including the Renters Rights Act and energy efficiency requirements. 

However, important context exists: rents have risen 25% over the last five years, supporting landlord income during this period of regulatory and taxation change. This rental growth provides a buffer that helps navigate the adjusted taxation landscape. 

The mansion tax for high-value properties 

From 2028, a high-value council tax surcharge applies to properties worth over £2m. The annual charge is £2,500 for properties between £2m-£5m, rising to £7,500 for properties above £5m. This affects an estimated 0.5% of UK homes, with 85% concentrated in London and the South East. 

For owners of properties above these thresholds, factoring in the surcharge from 2028 forms part of ongoing cost planning. The two-year timeline before implementation allows strategic consideration of options. 

What this means for your property strategy 

These changes create different planning considerations depending on your position. For most buyers and homeowners, the 99.5% below the £2m threshold, the budget maintains existing structures with no stamp duty changes and no new annual levies. 

For landlords, the April 2027 timeline for tax rate adjustments provides a clear horizon for reviewing portfolio performance. Running projections with the 2 percentage point increase incorporated shows the impact on net returns. Properties with strong rental demand and operational flexibility are well-positioned to navigate the changes. 

For high-value property owners above £2m, understanding the 2028 surcharge implementation allows for informed long-term planning about property holdings. 

Planning your next steps 

Successful property participants adapt their strategies with clear information rather than reacting to uncertainty. The budget has provided that clarity: confirmed stamp duty structures, defined tax rate changes from April 2027, and specific surcharge thresholds from 2028. 

Consider speaking with a qualified accountant who specialises in property taxation to understand how these measures affect your specific circumstances. For landlords, modelling your portfolio returns with the April 2027 tax rates incorporated shows the practical impact on individual properties. 

For those looking to enter the market or expand portfolios, the removal of uncertainty around potential broad-based property taxes creates a clearer environment for planning. The roughly 210,000 homes on the market above £500,000 benefit from lifted speculation about annual levies. 

The April 2027 timeline for landlord tax changes and 2028 implementation for the mansion tax provide definite planning horizons rather than immediate reactive pressures. This allows strategic positioning within the confirmed framework. 

Contact us today for guidance tailored to the current market conditions