Following the Budget on Wednesday 26th November, we have comprised some of the key points from the budget and how it will be affecting the housing market.
‘Mansion tax’ payable for homes worth more than £2 million
Paid on top of council tax, homes valued over £2 million will pay an annual surcharge. The charge will be £2,500 for properties over £2 million, and £7,500 for properties over £5 million. The tax will be payable by the owner of the property rather than the occupier.
Income tax on rent to rise by 2% for landlords
From 2027, income tax on rental income for landlords will rise by 2%.
It had been widely rumoured that landlords would pay national insurance on rental income. But instead, the Chancellor has decided to increase basic, higher and additional property income tax rates from April 2027. This means landlords will now pay 22%, 42% and 47%.
Did stamp duty change in the Budget?
No changes were announced to stamp duty. Despite lots of rumours over the last few months about how stamp duty might change, there were no announcements about stamp duty in the 2025 Autumn Budget.
If you have any questions, please don’t hesitate to get in touch with us.
