Presence & Co. Estate Agency has shared its response to the Autumn Budget announced yesterday, highlighting what the changes mean for buyers, sellers, landlords and the wider housing market.
The Budget brought fewer surprises than expected, with no major restructuring of Stamp Duty or Capital Gains Tax. However, two notable shifts will shape the market over the coming years: a new high-value council tax surcharge and increased taxation on rental income.
Key Measures Announced
• High-Value Council Tax Surcharge: From April 2028, properties valued above £2 million will face a new annual council tax surcharge, widely referred to as a “mansion tax”.
• Stamp Duty Land Tax (SDLT): Despite widespread speculation, there were no changes to Stamp Duty. All current thresholds and structures remain in place.
• Landlord Taxation: From April 2027, income tax on rental earnings will increase by 2 percentage points across all bands (22%, 42%, and 47%).
What Was Not Included
The Chancellor did not introduce any of the more dramatic property reforms that had been rumoured, including:
• No new national property tax
• No changes to Stamp Duty thresholds
• No introduction of CGT on primary residences
• No general overhaul of the council tax system
Alex Mills, Head of Sales & Lettings commented:
“For most buyers and sellers, this Budget brings reassurance rather than disruption. Stamp Duty has been left untouched, which helps keep moving plans predictable, especially for those purchasing under the £2 million threshold. The bigger impacts are at the very top end of the market and within the landlord sector, where increased taxation will likely steer decisions over the next few years.”
Buyers & Movers
Those purchasing below £2 million will see no change to buying costs. With SDLT untouched, the core financial considerations remain stable.
Landlords
The tax increase from 2027 may prompt some landlords to re-evaluate their portfolios, as rental yields tighten.
Homeowners & High-Value Vendors
Owners of properties valued above £2 million may experience shifts in buyer behaviour as the 2028 surcharge approaches. Sellers in this bracket may begin reassessing long-term plans.
Overall Outlook
The Autumn Budget introduces targeted rather than broad reforms, offering stability for the majority of movers. The changes primarily focus on high-value homes and rental income, while the mainstream market remains largely unaffected.
Presence & Co. will continue to support clients navigating the market and offer tailored advice across buying, selling and investment decisions.
