The 2025 Budget outlines a steady landscape for property owners, with a mix of stability now and gradual updates over the coming years. For homeowners and landlords, understanding these updates is key to planning moves, investments, and rental strategies. Hunters explains the main developments and what they could mean for you.
High-value homes will see a future surcharge
One of the headline changes affects properties valued over £2 million in England. From April 2028, these homes will incur a High Value Council Tax Surcharge, based on updated VOA valuations due in 2026. The charge will range between £2,500 and £7,500 per year.
This measure affects a narrow segment of the market, primarily concentrated in London and the South East. So for many homeowners outside these areas, the impact will be minimal for now.
Stamp duty and homes above £500,000 remain unaffected
Despite speculation, Stamp Duty Land Tax remains unchanged. There are also no new taxes for homes above £500,000, except for the separate high-value surcharge coming in 2028.
Anyone planning to move in 2025–2026 can continue with familiar buying costs and budgeting expectations.
Rental income tax rises in 2027
Landlords in England, Wales, and Northern Ireland will see a 2-percentage-point increase across all income tax bands from April 2027:
- Basic rate rises from 20% to 22%
- Higher rate rises from 40% to 42%
- Additional rate rises from 45% to 47%
Scotland is unaffected due to its devolved tax system. While this does not affect daily lettings management, it will play a role in long-term yield planning and wider investment decisions.
Commercial landlords gain extended support
From April 2026, smaller commercial properties like retail, hospitality, and leisure units with rateable values under £500,000 will benefit from permanently reduced business rate multipliers.
This provides longer-term stability for commercial landlords following several years of short-term relief renewals.
What continues to underpin the UK property market
Even with upcoming tax changes, property continues to provide solid opportunities:
- Rental demand remains high in many regions
- Limited stock keeps yields attractive
- Long-term capital growth is achievable
- Bricks and mortar remain a stable asset compared with financial markets
Hunters sees property as a dependable asset class, particularly in areas with sustained tenant demand.
Regional differences matter
The new surcharge on properties valued above £2 million is largely centred on prime London and South East postcodes, where these homes are most common. In most regions across the UK, £2m+ homes are uncommon, so this change is unlikely to influence typical buying and selling activity. With stamp duty rules staying the same, buyers and sellers across most regions can continue moving home under the existing, well-understood framework.
Legislation beyond the Budget to monitor
Renters’ Rights Act (2025–2026)
A major reform to tenancy law is underway. Hunters will continue to share clear updates as the legislation develops, helping landlords stay informed as responsibilities evolve. Explore our complete guide to the Renters’ Rights Act.
Making Tax Digital (April 2026)
Landlords and self-employed property owners will need to maintain digital records and file returns online. Early preparation will help make this transition smoother.
Next steps for homeowners and landlords
The Budget introduces gradual changes rather than sudden disruption:
- Buyers and movers continue with unchanged stamp duty into 2026
- Homes below £2 million face no immediate tax changes
- Landlords should consider the impact of the 2027 rental income tax rises
- Commercial landlords gain certainty with permanent multipliers
- Digital tax reporting starts in 2026
The 2025 Budget introduces measured changes rather than sudden shifts, giving homeowners and landlords time to plan. With Hunters by your side, our local estate agents are here to help you understand what matters most in your area and how the latest Budget may shape your next property decision.
