The Autumn Budget 2025 will be remembered not for its surprises, but for the weeks of rumours and speculation that preceded it. Rarely has a Budget been so heavily leaked and so widely second-guessed, and rarely has that conjecture done so much to stall the market. Buyers paused. Sellers waited. Landlords held off decisions. Tenants stayed put. Many simply wanted clarity before moving forward.
Now that the dust has settled, we finally know what did and did not happen. The headline? For all the noise, the impact is far more modest than expected.
As Malcolm Prescott, Managing Director of the award-winning estate agents Webbers, notes:
“Well after all of the speculation, clearly there is really not a lot here to effect any real immediate change. It has been our view for a few weeks that there are many buyers simply waiting to see what the Chancellor would do and as a result we do have some pent-up demand, so we are expecting a busy period as people just want to get on now.”
And that sentiment captures the true turning point of this Budget: not seismic policy change, but the release of uncertainty.
What Actually Happened?
1. Council Tax and the ‘Mansion Tax’ That Wasn’t
In the end, we didn’t get a Mansion Tax but we did get something close. A new Higher Value Council Tax surcharge will apply to homes valued over £2 million, starting at £2,500 a year and scaling to £7,500 for properties over £5 million. A narrow but notable policy for the top of the market.
2. Stamp Duty
Perhaps the biggest surprise was the absence of change. Despite calls for a reduction to boost transactions, Stamp Duty remains untouched.
3. Capital Gains Tax
Rumours of major reform fell away. No increase, no reform of main residence relief. Investors and second-home owners will breathe a sigh of relief.
4. Income Tax on Earnings
Rates stay the same. But the freeze on personal allowances and thresholds until 2030/31 will quietly draw more taxpayers into higher bands, a slow burn effect on affordability and disposable income.
5. Income Tax on Rental and Savings Income
Instead of the mooted National Insurance increase for landlords, the Chancellor opted for a 2% rise in Income Tax on rental and savings income—another tightening measure for landlords.
What Does This Mean for the Market?
Despite raising an estimated £26 billion in extra tax overall, the measures remain indirect. Households will feel slightly worse off, but certainty has finally returned—and that may matter more than anything else.
There are two key dynamics to watch:
Confidence is coming back. Buyers and sellers were waiting. Now they can move.
Interest rates appear on the turn. Many analysts expect further reductions in 2026, with the Bank of England widely tipped for another cut in December. That alone could unlock demand.
The new Council Tax surcharge will be barely noticeable to the mainstream market and may even strengthen interest in properties just under the £2 million threshold.
What Should You Do?
For Homebuyers
With clarity restored and mortgage rates forecast to soften into 2026, now might be the perfect moment to begin planning your move.
For Sellers
Well-priced and well-presented homes continue to attract strong buyers. If you’ve been waiting for certainty, this may be the moment to act and if you have been selling for a while with no real success, request an up-to-date valuation.
For Landlords
The tax landscape continues to tighten. The 2% increase in Income Tax on rental income, combined with the forthcoming Renters' Rights Act on 1 May 2026, means now is the time to review your portfolio and future strategy.
Final Thoughts
If the Budget revealed anything, it’s that the property market thrives on clarity as much as on incentives. For all the speculation, the Chancellor has chosen steadiness over disruption. And that alone may unlock the activity the market has been waiting for.
