Autumn Budget 2025: what it means for homeowners and landlords

With the Autumn Budget now announced, there are several updates that could affect homeowners, landlords and anyone planning to buy or sell over the coming months.

This Budget does bring change, but for most buyers and homeowners the impact is manageable. The biggest shift will hit high value homes and landlords. Most of the market sees little immediate change, and mortgage pricing is still expected to improve into 2026.

Stamp duty left untouched

Despite speculation, the Budget did not change stamp duty. This means:

• Transaction costs remain the same
• No immediate benefit or penalty for buyers
• We may still see reform in a future Budget

For most homebuyers this means business as usual.

Rental income and dividend taxes going up from 2027

Landlords will pay more tax on property income from April 2027. Every tax band will rise by 2 percentage points.

Many landlords will see lower net returns. Some may pass these costs on to tenants through higher rents. Others may decide to sell, creating potential opportunities for first time buyers or people looking to expand portfolios.

A new annual charge for high value homes

The government has confirmed a new annual tax on properties valued at £2 million or more. It will be introduced from April 2028, based on valuations set in 2026.

If you own or plan to buy a home over the £2 million threshold, you will face an extra annual charge starting at £2,500 for properties just over the line, rising to £7,500 for those worth £5 million or more. This is in addition to standard council tax.

Other key points

• Lenders may review their affordability models in response to the wider tax changes and frozen income thresholds, which could affect how much buyers and landlords can borrow.
• The rental market is likely to see continued pressure as some landlords exit and supply tightens.
• Capital Gains Tax was left untouched, which may give landlords considering selling a useful window before any future reforms.
• There was no new support announced for first time buyers, which means saving and planning remain more important than ever.
• The broader backdrop of easing inflation and softer growth is likely to influence mortgage pricing in a mostly positive way. If inflation continues to fall, lenders are expected to gradually reduce rates through 2026, although affordability checks may remain conservative.

What I expect over the next year

Buy to let: higher costs could nudge some landlords to sell. This may improve supply for buyers, but could push rents up in some areas as rental stock tightens.

First time buyers: little direct impact from the Budget, but changes in the landlord market may create more options at entry level price points.

High end homes: activity may cool slightly as buyers take time to understand the new annual charges. Some owners may downsize before valuations are locked in.

Mortgages: the Budget does not directly change mortgage rates, but wider economic measures could influence lender pricing next year. If you are due to remortgage in early 2026, the Budget itself does not change your options, but the improving inflation outlook may lead to more competitive rates over the next year.