Impact on Homeowners

Are homeowners affected by the Budget?

For most UK homeowners, the changes are minimal, unless your property is valued over £2 million.

What homeowners need to know

• Homes under £2m: No new taxes or annual surcharges.
• Homes over £2m: A new annual property surcharge will apply from April 2028, often called a “mansion tax.”
• Stamp Duty: moving to a new home may cost more in stamp duty.

Homeowners should review future moving plans, especially if they own a high-value property and want to avoid additional taxes in 2028.

Impact on Landlords

Landlords face the biggest changes in this year’s Budget, making this a crucial time to look into rental strategies.

Key landlord tax changes:

• Higher rental income tax rates (22%, 42%, 47%) from April 2027.
• Possible extra charges for landlords with £2m+ properties from April 2028.
• Reduced profitability for smaller or highly mortgaged landlords.

How this affects the rental market

• High Potential sell-off of rental properties as some landlords exit the sector.
• Reduced supply of rental homes, which typically increases rental costs.
• Expansion of professionalised landlord portfolios as smaller landlords leave.

Landlords will face higher costs and may see reduced returns, affecting rental prices and availability in many UK regions.

Impact on Homebuyers

Whether you’re a first-time buyer or home mover, the Budget introduces changes worth understanding.

Buying a home after the Budget

• Stamp Duty costs will rise for many buyers.
• Mid-value homes remain unaffected, with no additional surcharges under £2m.
• Increased availability of high-value homes may appear as owners consider selling pre-2028.

Implications for property investors

• Higher landlord taxes may reduce competition in the buy-to-let market.
• Investors with strong equity or cash positions could find new opportunities.

Buyers should budget more carefully and take advantage of increased listings in certain segments of the market.

Impact on Renters

Renters aren’t taxed directly in the Budget, but they will feel its knock-on effects.

Key impacts for renters

• Rents may rise as landlords respond to increased tax pressures.
• Fewer rental properties available if landlords exit the market.
• More competition for high-quality homes in popular areas.
• Renewals may become more expensive.

How renters can prepare

• Register early for new rental alerts.
• Secure renewals in advance where possible.
• Track local rental trends to understand expected increases.

Renters should prepare for potential rent rises and reduced property choice, especially in high-demand locations.

What the 2025 Budget Means for the UK Housing Market

Overall, the 2025 Budget is expected to reshape the property landscape:

• More movement in the high-value housing market ahead of the 2028 surcharge.
• A shift in the buy-to-let sector, with possible reductions in private rental stock.
• Increased focus on mid-range properties, which remain unaffected by new taxes.
• Continued pressure on renters as supply struggles to keep up with demand.

The property market will continue to evolve, and buyers, sellers, landlords and renters must stay informed to make confident decisions.

Need Estate agent advice on the Budget's Impact?

If you’re unsure how the Budget effects your next property move, our team is here to help. Whether you’re selling, buying, renting or expanding your portfolio, we can provide guidance and up-to-date market insights.

Give us a call on 01983 521212!