Autumn Budget 2025 – What could it mean for the UK property market?

The Autumn Budget 2025 is due on 26th November, and the property world is understandably on edge. The Government has pledged not to increase income tax, VAT or National Insurance for “working people”, which means attention is firmly on other sources of revenue – and property is very much in the spotlight.

At the time of writing, nothing has been confirmed. However, a number of themes are emerging from Treasury briefings, think-tank reports and market commentary. This blog looks at the possible changes and what they might mean for buyers, sellers, homeowners and landlords.

1. A shift in how property is taxed?

Commentators widely expect the Budget to look at reforming existing property taxes such as Stamp Duty Land Tax (SDLT) and Council Tax, and possibly introducing a new annual property tax for higher-value homes.

Several reports suggest that officials have explored replacing or partly replacing SDLT with a levy based on a percentage of a property’s value, potentially starting from homes worth around £500,000. In some versions of these proposals, properties over £1 million would face a higher rate.

There has also been speculation about:

• A “mansion tax” or higher ongoing charges for homes at the very top of the market (for example, above £2 million).
• Reform of Council Tax, which many analysts consider outdated and regressive, with the possibility of higher bills for properties in the South East and London compared with much of the North.

None of these ideas are guaranteed to appear in the final Budget, but they give a good indication of the direction of travel: less reliance on income taxes, more emphasis on wealth tied up in property.

2. What could this mean for buyers and movers?

In the run-up to the Budget, uncertainty itself is already influencing behaviour. Data from Rightmove shows the biggest November fall in asking prices for over a decade, with average asking prices down 1.8% in the four weeks to 8 November and a higher-than-usual proportion of sellers cutting their prices.

Many potential buyers, particularly in the £500,000+ bracket, are pausing to see whether:

• SDLT will be reformed, possibly lowering upfront transaction costs but replacing them with higher ongoing charges; or
• a new annual tax on higher-value homes will be introduced, increasing the long-term cost of ownership.

For those planning a move, the key points to bear in mind are:

• Timing may matter – if the Budget increases the ongoing cost of owning a high-value property, some buyers may prefer to complete under the existing regime, while others may wait to see whether upfront SDLT falls.
• Life events still come first – relocation for work, changes in family circumstances and schooling needs are usually more important than trying to time the market perfectly.
• Mortgage conditions could improve – although the Budget does not set interest rates, markets are expecting a gradual easing in borrowing costs into 2026, which may support affordability even if taxation becomes less generous.

If you are part-way through a transaction, it will be important to understand when any announced changes take effect, as some may apply to completions after a certain date.

3. Homeowners who plan to stay put

For homeowners who are not planning to move, the main concern is the ongoing cost of holding property, rather than SDLT.

If an annual property tax or more progressive Council Tax is introduced, homeowners in higher-value bands – particularly in London and the South East – could see their yearly bills rise. Analysis of alternative property-tax models suggests that many regions outside the South East would pay less, while more expensive areas could pay significantly more.

From a practical perspective, this could mean:

• Budgeting for higher yearly property charges if you own a home in a high-value area or your property is close to a relevant threshold (for example around £500,000 or £1 million).
• Thinking carefully about major home improvements that significantly increase value, where they might push a property into a higher tax band.
• Considering whether downsizing, which many people already plan to do later in life, becomes more attractive if annual charges rise for larger properties.

On the other hand, if SDLT is reduced for lower-value homes and more of the tax burden is shifted to very expensive properties, some first-time buyers and movers in modest price brackets could find it easier to get onto or move up the ladder.

4. Landlords, investors and the private rented sector

Landlords and property investors are likely to be watching this Budget particularly closely.

Pre-Budget commentary has pointed to several possible measures aimed at investors, including: tighter reliefs on property income, changes to Capital Gains Tax on disposals of second homes or investment properties, and measures that would increase the overall tax take from rental portfolios.

These types of changes, if implemented, could have several effects:

• Smaller landlords may reconsider their position if net returns fall, particularly where properties are already marginal once mortgage costs, repairs and existing tax rules are taken into account.
• Some may opt to sell, which could increase supply in certain price brackets and areas, especially where properties are attractive to first-time buyers or owner-occupiers.
• Others may try to pass on higher costs in the form of increased rents, which would put further pressure on tenants in already stretched rental markets.

Any reforms will need to balance the desire to raise revenue with the risk of reducing the supply of rental homes if too many landlords exit the market at once. Recent surveys by industry bodies already show subdued sentiment among landlords, with many adopting a “wait and see” approach until the Budget details are known.

5. How is the market behaving ahead of the Budget?

We are already seeing signs that Budget uncertainty is affecting the UK housing market:

• Rightmove figures show a sharper-than-usual fall in asking prices this November and an increase in the number of homes with price reductions.
• Zoopla data suggests buyer demand for homes above certain price points (for example, £500,000 and £1 million) has dipped as people await clarity on possible new property taxes.
• The Royal Institution of Chartered Surveyors (RICS) reports that buyer demand and agreed sales have been in negative territory for several months, with expectations of a subdued market into early 2026.
• Some estate agents, particularly in London, have warned that speculation about property taxes is deterring buyers and holding back sales until after the Budget.

In short, uncertainty itself is having a cooling effect, particularly at the mid-to-upper end of the market. Once the Chancellor has set out the detail, we are likely to see a period of adjustment followed by renewed activity as buyers and sellers gain confidence about the rules they are operating under.

6. What should buyers, sellers and landlords do now?

Until the Chancellor actually delivers the Budget, any decisions must be made against a background of uncertainty. However, there are some sensible steps that clients can take now:

• Review your plans, but avoid panic moves. If you are close to buying or selling, speak to your conveyancer and, where appropriate, your tax or financial adviser about how different scenarios might affect you.
• Understand where your property sits in the value spectrum. Homes around key thresholds (such as £500,000 or £1 million) may be more affected if tiered property taxes are introduced.
• Landlords should examine their portfolios. Consider which properties are most sensitive to changes in tax or interest rates and whether any planned disposals should be brought forward or delayed until after the Budget.
• Keep good records. Accurate records of purchase prices, improvement costs and rental income will help you respond quickly to any changes in Capital Gains Tax or income-tax treatment.

Above all, it is important not to act solely on speculation. Some of the more radical ideas may not make it into the final Budget, and rushing to complete a transaction or sell an asset for tax reasons alone can prove costly if the reforms take a different shape.

7. How Versus Law can help

At Versus Law Solicitors, our residential conveyancing team is used to guiding clients through a changing legal and tax landscape. We are CQS-accredited and act for buyers, sellers and landlords across England and Wales.

We cannot predict precisely what the Chancellor will announce, but we can:

• Explain how existing SDLT, Council Tax and other property-related rules apply to your current transaction.
• Work with your other professional advisers to help you understand the legal and practical implications of any changes once the Budget has been delivered.
• Progress your matter efficiently so that, where timing is important, you are in the best possible position to meet any relevant deadlines.

If you are considering buying, selling or restructuring your property interests and would like to discuss how the Autumn Budget 2025 might affect you, please contact our conveyancing team at Versus Law. We will be happy to talk through your circumstances and help you plan your next steps.