28th November 2025

Do You Own or Rent Out a Property?

Chancellor Rachel Reeves has delivered her Autumn Budget, and it includes changes to property taxes and other measures that relate to housing. 

Key takeaways:

• Homes worth more than £2 million will be subject to a so-called mansion tax, from April 2028 
• No changes to stamp duty, as had been widely rumoured in recent months 
• Landlords to pay additional 2% income tax on rental income

‘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. 

How long before we start to see the impact of the Budget?

With the Budget now confirmed, home-movers can now plan their moves with more certainty, which can only be a good thing. The months of speculation have already been affecting market activity. 

Some of the changes announced aren’t due to come into force until 2027 (landlord income tax changes) and 2028 (mansion tax). So any movers or homeowners affected by these changes have time to plan and assess what the changes might mean for them.