As she seeks to plug a reported £20bn hole, the Chancellor Rachel Reeves has unveiled property tax changes in the Autumn budget yesterday.
Reeves unveiled a raft of tax rises, but property taxes came away relatively untouched, with the announced changes set to impact a far smaller proportion of the market than anticipated. It comes after several months of intense speculation about what Reeves may have in store, with rumoured proposals ranging from a levy on rental income to expanding Capital Gains tax.
Here are the key announcements that are set to shape the housing market and what they may mean for you.

No new annual tax on homes under £2,000,000

It has been confirmed that there will be no new annual tax on properties valued above £500,000. This should bring relief to (according to Zoopla) approximately 210,000 homes on the market valued above £500,000. Rightmove confirmed that less than 0.5% of all house sales agreed this year have been for properties with an asking price of over £2million, and around 1% of home sales are priced above this threshold. Sales agreed for homes worth more than £2million have already been down 13% year-on-year, suggesting that the market has been reacting to the speculation about the changes in recent months. Buyer interest is expected to strengthen into 2026 with this threat lifted.

Stamp duty remains intact

The existing stamp duty system remains intact for the Autumn budget. Buyers in England and Northern Ireland continue to pay stamp duty on homes priced above £125,000, with first-time buyers retaining a £300,000 threshold on properties costing £500,000 or less. There had been rumours that stamp-duty could be paid in instalments, but it remains a one-off payment due upon completion.
Sellers will not need to adjust their asking prices to absorb the annual charge, thereby preserving affordability for buyers. It also avoids a cliff-edge effect that may have emerged around the £500,000 mark, where demand could have bunched just below the threshold and softened above it.
Although not as exciting as some had hoped, this continuity may offer the market a steadier footing.

New Mansion Tax on £2m- plus homes

A new high value council tax surcharge, so called ‘mansion-tax will be applied to more than 100,000 of the most expensive homes worth over £2m in England from 2028 thanks to the Autumn budget.
The Chancellor reported an annual additional annual cost of £2,500 for properties worth £2m, rising to £7,500 for properties worth more than £5m.
For a £2m home, this is less than double the average council tax today and may be less
than many feared.

The mansion tax will affect only a small share of homes; it may impact in the short term but as an annual charge some owners of high value homes may look to sell. The changes impact the very highest-value homes, leaving the vast majority of household unaffected.

Rise to property income tax rates for landlords

From April 2027, Reeves announced that landlords will face increased property tax rates. The basic, higher and additional rates of income tax for property income will each increase by 2% taking them to 22%, 42% and 47% respectively.
This comes after Reeves raised stamp duty on the purchase of additional homes, from 3% to 5% in last year’s Budget, so this move is unlikely to unsettle landlords further. Landlords do, however, face further regulations such as the Renters' Right Act.

David Phillip commented, “After weeks of speculation and political theatre, the Budget finally
delivered clarity, albeit a bit of a damp squib that failed to have much substance and where it
is most needed, meaningful reform”

With the Budget now confirmed, home movers can now plan their moves with more certainty,
which can only be a good thing. Some of the changes announced aren’t due to come into force until 2027 (landlord income tax changes) and 2028 (mansion tax). Any movers or homeowners now have time to assess and plan for what the changes might mean for them.
So now that the budget has been delivered, if you are considering selling your home and would like a free-market appraisal call David Phillip on 0113 4676400.
David Phillip Estate Agents, 86, Leeds Road, Bramhope LS16 9AN w: davidphillip.co.uk
David Phillip selling houses in North Leeds and covering Bramhope, Adel, Cookridge, Pool-
in Wharfedale, Alwoodley and Otley