Latest London Property News: Autumn Budget Review 2025

Everything You Need To Know Following The Autumn Budget Review 2025

1.      Property Income Tax Is Rising - Basic, higher and additional rates of tax on income from property, savings and dividends will rise by two percentage points.

2.      A New High Valued Council Tax Surcharge - The charge will apply to homes in the top four Council Tax bands. Properties valued between £2m and £2.5m (at 2026 values) will pay £2,500 extra year; homes in the highest band (worth at least £5m) will be charged an additional £7,500 on top of usual bills. These sums will be uprated by CPI inflation each year.

3.      Capital Gains & Business Sale Relief Tightening

4.      High-value homes will face significantly higher Council Tax bills, while landlords will pay a larger share of their property income to HMRC.

5.      A Mansion Tax is coming in the form of a Council Tax surcharge, the new annual levy will be in play from April 2028.

6.      It’s been estimated that around 100,000 properties (0.4% of England’s total stock) will be affected by the new charge – with a heavy focus on homes in London and the South East.

7.      From April 2027, property income tax rates will stand at 22% (basic), 42% (higher) and 47% (additional).

None of these changes dramatically effect the prime market, what they create is a clearer fiscal environment. For buyers the next 6-12 months may offer a pricing window before the market adjusts. For sellers, stability will encourage motivated buyers to transact sooner.