Autumn Budget 2025 and impact on the Property Industry
The UK property market never sits still. And with the Autumn Budget 2025 just around the corner, landlords, developers, and investors across the country are asking one thing: what will this mean for me?
Chancellor Rachel Reeves is preparing her second Budget. After a year of sluggish economic growth, rising inflation, and new spending commitments on the NHS and defence, the Treasury faces a £40 billion gap to fill. Reeves has promised not to raise income tax, National Insurance, or VAT – but that leaves other parts of the tax system firmly in the spotlight.
This blog breaks down what’s being discussed, what’s realistic, and most importantly, how it could affect the property industry in 2026.
Property & Housing ripple effects are massive.
The Budget is the government’s annual roadmap for spending and taxation. It sets the tone for the year ahead and when it comes to property and housing, the ripple effects are massive.
Last year, Reeves raised £40 billion through tax rises, including changes to National Insurance and Capital Gains Tax. This year, analysts warn further tax increases are “inevitable unless the economy improves.”
For landlords and property professionals, the main areas under review include:
- Stamp duty and a possible new national property tax
- Inheritance tax reforms
- Capital gains tax tweaks
- Freezes on income tax thresholds (a “stealth tax”)
- Possible changes to ISAs and pensions
- Local authority funding and council tax overhaul
Let’s look at each of these in more detail.
Stamp duty reform: a new national property tax?
One of the biggest rumours is that the government could replace stamp duty with a national property tax.
What’s being discussed?
- Stamp duty could be scrapped for owner-occupied homes and replaced with a tax paid by the seller when they move.
- The tax would only apply to homes worth over £500,000, starting at 0.54% and rising to 0.81% depending on the value.
- Around 20% of property transactions would be affected (compared to the 60% currently caught by stamp duty).
For now, reports suggest stamp duty rates for second homes and landlords would stay the same.
What this means for the property industry
- If you’re a developer selling homes, this could reshape margins and exit strategies.
- For landlords, buying additional properties may still attract the existing surcharge, but the broader market could move differently as owner-occupiers adjust.
The policy aims to make moving house easier, especially for jobs and family reasons – which could increase market fluidity in some regions.
Council tax overhaul: a longer-term project
Alongside stamp duty, ministers are looking at the future of council tax.
What’s being explored?
- Replacing outdated council tax bands (still based on 1990s property values).
- Introducing a local property tax, paid by the owner rather than the resident.
- Rates would be set locally, with a minimum charge of £800 a year for properties worth up to £500,000.
This is unlikely to happen immediately – it would take time, and possibly another Labour term – but it signals a major shift in how property is taxed.
What this means for property professionals
- Local authority budgets are under severe pressure, and reform will almost certainly raise bills for higher-value homes.
- Investors with property in London and the South East may be hit hardest.
A more accurate system could reduce long-term inequalities between regions.
Capital Gains Tax (CGT): more changes ahead?
CGT was already increased in 2024, with rates now at 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers on property sales.
Possible changes this autumn:
- Rates could rise further.
- The £3,000 annual allowance could be cut again.
- Most dramatically, there are rumours that primary residences worth £1.5m+ could face CGT when sold – a so-called “mansion tax.”
What this means for landlords and investors
- Anyone holding multiple properties should watch CGT closely. Selling in 2026 could come with a higher bill.
- High-end markets, especially in London, may slow further if a mansion tax becomes reality.
- Investors need to plan exits carefully and consider professional tax planning advice.
Inheritance tax (IHT): frozen thresholds and pension changes
IHT has been under the microscope since Reeves’s first Budget.
Key points to watch:
- The £325,000 nil-rate band has been frozen since 2009 and could remain frozen beyond 2030.
- Unused pensions will count toward estates from April 2027, dragging more families into IHT.
- Proposals include extending the “7-year rule” on gifts to 10 years, or introducing a lifetime cap on tax-free gifts.
Impact on the property industry
- Landlords looking to pass on property portfolios to family could face significantly higher IHT bills.
Estate planning is becoming even more essential.
Income tax: stealth rises through threshold freezes
While headline rates of income tax won’t rise, the government may extend the freeze on thresholds beyond 2028.
This “fiscal drag” means more people fall into higher tax bands as wages rise. For landlords with property income, this could mean paying more tax without any official rate increase.
ISAs and pensions: changes on the horizon
ISAs
- The current £20,000 annual ISA limit is under review.
- Cash ISA allowances may be reduced, with a push to encourage more investment in stocks and shares.
Pensions
- Salary sacrifice arrangements could be restricted, hitting higher earners.
- The 25% tax-free lump sum (currently capped at £268,275) remains under speculation.
For landlords and property professionals using pensions as part of their financial planning, these changes could alter strategies.
Wealth taxes: a broader debate
Within Labour, there’s pressure to introduce a wealth tax – an annual levy on individuals with assets above a certain level. While there’s no consensus yet, it shows the direction of travel: wealth, not wages, is the government’s focus.
Property in 2026 – What’s coming?
With all the speculation around the Autumn Budget 2025, many people are asking: how will the property market perform in 2026?
While no one can predict with certainty, here are some of the most common questions being asked – and the likely answers.
Will property prices go up in 2026?
That depends on how the new tax rules land. If stamp duty is replaced by a property tax on sellers, it could make moving easier and increase activity in some areas. But changes to capital gains tax and inheritance tax may cool demand at the higher end of the market, particularly in London and the South East.
Is 2026 a good year to invest in property?
For many investors, 2026 could bring opportunities. If higher taxes push some landlords to sell, that could increase supply in the market. Investors with strong strategies and financing in place may find deals others overlook.
Will landlords face more costs in 2026?
Yes, most likely. With possible changes to capital gains tax, inheritance tax, and income tax thresholds, landlords need to plan carefully. Even if tax rates don’t rise, “stealth taxes” like frozen thresholds mean more landlords will be paying higher bills.
What regions will perform best in 2026?
Regions outside London and the South East may look stronger if new wealth-focused taxes bite harder in expensive areas. Cities with lower average house prices and strong rental demand could remain attractive for investors.
Bottom line: 2026 is shaping up to be a year of adjustment. Property professionals who stay informed, network with others, and adapt quickly will be best placed to thrive.
FAQs about UK Homes Network
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How can UK Homes Network help property professionals in 2026?
We provide:
- Property networking without time limits
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Let’s see what happens
The Autumn Budget 2025 is shaping up to be one of the most consequential for the property industry in years. With changes expected to stamp duty, inheritance tax, CGT, and pensions, landlords and investors need to stay alert.
The key theme? Wealth over wages. The government is reluctant to raise taxes on working people, so property, assets, and inheritances are squarely in focus.
For landlords, developers, and property professionals, now is the time to:
- Review portfolios and potential disposals ahead of possible CGT changes.
- Revisit inheritance planning.
- Keep an eye on stamp duty reforms that could alter buyer behaviour.
- Stay connected through property networking to hear how others are adapting.
At UK Homes Network, we’ll continue to keep members informed, connected, and ready to seize opportunities – whatever the Chancellor pulls out of the red box.
