Chancellor Rachel Reeves delivered her Autumn Budget yesterday, so here is an outline of what the announcement means for the housing market.
Mansion Tax Introduced
From April 2028, a new annual surcharge will apply to homes valued more than £2 million. The government has said there will be a targeted valuation exercise every five years to determine which surcharge band the property falls in.
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House Value
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Annual Surcharge (£)
|
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£2.0 - £2.5 million
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£2,500 |
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£2.5 - £3.5 million
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£3,500 |
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£3.5 - £5.0 million
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£5,000 |
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£5+ million
|
£7,500 |
Landlord Income Tax to Rise
From April 2027, landlords will see income tax on rental profit rise by 2%. This will change the net returns for Landlords who rent out to tenants and may prompt even more smaller landlords to sell up. The basic, higher and additional rates will increase to 22%, 42% and 47% respectively.
What This Means Going Forward?
Although these measures will not take effect until 2027 and 2028, their confirmation allows both homeowners and landlords to plan and assess what the changes might mean for them.
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