Autumn Budget 2025: The Key Property Changes You Need to Know

The Autumn Budget 2025 brought a small number of targeted but significant updates for property owners - particularly high-value homeowners and landlords. Here are the headline changes and what stayed off the table.

Headline Changes at a Glance

1. High-Value Council Tax Surcharge (England only)

Coming from 2028, homes valued at:

• £2m+ → £2,500 annual surcharge
• £5m+ → £7,500 annual surcharge

This is on top of existing council tax, and the Government will run a consultation before implementation.

2. Higher Income Tax on Rental Profits

From April 2027, the basic and higher rates applied to property income will each increase by 2 percentage points.
This means rental profits will be taxed at:

• 22% (basic rate)
• 42% (higher rate)
• 47% (additional rate)

A clear squeeze on landlords’ margins.

What Has Not Changed (Important!)

Despite speculation ahead of the Budget, none of the following reforms were introduced:

• No National Insurance on rental income
• No Capital Gains Tax on main residences
• No replacement or overhaul of Stamp Duty
• No revaluation of council tax bands (other than for the high-value surcharge)

These areas remain unchanged for now but could be revisited in future fiscal events.

What This Means for Property Owners

High-value homeowners

Expect higher annual running costs from 2028, especially for London and South-East properties above £2m. The surcharge effectively acts as a “mansion tax-lite”.

Landlords

Rising taxation on rental income will cut into net yields — potentially pushing some investors to rethink holding long-term rental stock.

Everyday homeowners

Outside the high-value band, there are no immediate changes to buying, selling or council tax.

Final Takeaway

This Budget targets wealth-based, ongoing property taxes rather than headline reforms like stamp duty or CGT. For now, the biggest impacts fall on high-value homeowners and landlords, while most of the wider property tax framework remains untouched.