The Autumn budget 2025 - how will it affect you?

After months of speculation, Chancellor Rachel Reeves has finally delivered her Autumn Budget. Whether you're planning a move, exploring your first purchase, considering a sale, or reviewing an investment, understanding these changes is essential. At Daniel Cobb, we’ve taken a close look at what this means for you and how we can support you through the shifting landscape.

What are the key changes?

The Chancellor has avoided major tax rises such as income tax or VAT, instead focusing on cost-of-living support. However, freezing income tax thresholds could mean more people paying higher levels of tax over time.

For the property market specifically, the key announcements include:

•  A 2% rise in income tax on property earnings from April 2027
• A new yearly council tax surcharge for properties over £2 million from April 2028
• Stamp Duty will remain unchanged

For many Londoners, the decision not to lower the threshold for the council tax surcharge is positive news. Properties below £2 million may now see increased demand. If you’re unsure how your home fits into this new dynamic, our local experts are here to help you assess its position in the market.

How will UK property tax changes in 2025 affect me?

Council tax surcharge

For the first time since 1991, properties in council tax bands F, G and H worth £2m+ will be re-valued and subject to a new “Mansion Tax”.

• Homes between £2m and £2.5m: £2,500 annual surcharge
• Homes £5m and above: £7,500 annual surcharge

Prime central London will feel this most keenly, many of whom are Daniel Cobb clients. We understand how frustrating these changes can be, especially for long-term homeowners. Our valuation team can provide honest advice about the true worth of your property and guide you through what the surcharge means for your future plans whether that’s staying put, downsizing, or renting out your home.

Property income tax rises

From April 2027, basic, higher, and additional rates of property income tax will rise by 2%. Many landlords may consider restructuring or switching to a company structure.

If you’re a landlord whether you have one property or a larger portfolio our dedicated lettings and investment specialists can explain your options clearly and help you plan the most cost-efficient route forward. We also offer full management services for those who want to reduce the stress of day-to-day oversight.

What will happen to my mortgage?

While the Budget doesn’t directly affect mortgage costs, the financial market’s reaction will. If the Budget is well-received, borrowing costs could ease. With inflation still above target, many are watching the Bank of England closely for potential base-rate changes.

Buying or remortgaging soon? Daniel Cobb can introduce you to trusted, whole-of-market mortgage advisers who will help you understand your options in this fast-moving environment.

How will the Budget affect property prices?

Before the Budget, many buyers and sellers chose to pause and wait. Now that the position is clear, we expect renewed confidence and increased market activity particularly in central London.

Nationally, UK house prices are forecast to rise by 22% by 2030, while London’s growth is predicted at 13.6%. With London already at a much higher price point, this represents steady, sustainable increases.

If you’re curious about what this means for your neighbourhood or your own home our local teams in Westminster, London Bridge and Kennington would be delighted to provide a tailored market update.

Will rents go up or down?

Landlords will face higher taxes from 2027, and ongoing supply shortages continue to support rental growth. However, the upcoming Renters’ Rights Act will curb bidding wars and cap rents at market value.

For renters, this should provide welcome stability. For landlords, it’s more important than ever to price properties correctly and manage tenancies professionally. At Daniel Cobb, we work closely with both sides to create fair, long-lasting tenancies and offer guidance on how upcoming legislation will affect your next steps.

What are the immediate prospects for the property market?

With the Budget now behind us, confidence is already edging back into the market. Any future interest rate cuts will support affordability and increase activity.

If you are considering selling, buying, investing or renting, now is an excellent time to start planning your move. At Daniel Cobb, we pride ourselves on offering thoughtful, honest advice grounded in decades of experience across central London.

Why not get ahead of the crowd and speak to one of our friendly teams in Westminster, London Bridge or Kennington? We’d love to help you take your next step with confidence.