The latest Autumn Budget has introduced significant property tax changes that will affect landlords, buyers and homeowners across the country. These updates highlight a clear shift in how the Government intends to raise revenue from assets and property-related earnings. For anyone connected to the housing market in Stoke-on-Trent, understanding these property tax changes is essential for planning ahead.
A new landscape for property income
One of the biggest property tax changes is the rise in tax rates on property income. From April 2027, basic, higher and additional rate taxpayers will all see a 2% increase on rental income. That moves the rates to 22%, 42% and 47%.
Alongside this, a new annual levy will be introduced from April 2028 for homes valued over £2 million. This is similar to a “mansion tax” and will be collected via council tax. The surcharge will begin at around £2,500 per year for homes between £2m and £2.5m and will rise to roughly £7,500 for properties worth above £5m. These property tax changes make it clear the Government intends to focus more heavily on wealth and property-based income.
SDLT remains unchanged
Despite speculation prior to the Budget, no property tax changes were made to Stamp Duty Land Tax (SDLT). The current bands and thresholds remain exactly as they are for buyers in England and Northern Ireland. While discussions about possible reform continue, SDLT was intentionally left out of this Budget. This means moving home remains subject to the existing upfront costs.
How property tax changes affect landlords, buyers and owners
For landlords, these property tax changes will reduce after-tax profits. Although rental income still escapes National Insurance, the rate increases will chip away at returns. Some landlords may consider selling, reducing investment, or increasing rents to compensate.
For buyers, unchanged SDLT means no reduction in the cost of moving home. Those hoping for a cut may feel disappointed that these property tax changes did not extend to Stamp Duty.
For owners of high-value properties, the new levy is the most significant development. Holding a property worth over £2 million will bring a new annual cost, which could influence decisions about whether to keep or sell.
Final thoughts
This Budget clearly signals a shift toward heavier taxation of assets and property-based income. These property tax changes will shape decisions for landlords, homeowners and buyers over the coming years. Although SDLT reforms may still appear in future rounds, the current direction is clear: property will play a bigger role in the tax system, and anyone planning a move or investment should take these changes into account.
