The 2025 Budget has provided a largely stable outlook for the UK property market. While a few long-term measures were announced, most taxes and moving costs remain unchanged. For homeowners, landlords, and property investors, this means the immediate market environment is familiar and predictable, giving you time to plan for the changes ahead.
Whitegates has reviewed the Budget announcements and put together a clear guide to what they mean for property owners and investors.
High-value homes face a new surcharge from 2028
From April 2028, homes in England valued at £2 million or more will be subject to a High Value Council Tax Surcharge. Using 2026 VOA valuations, these properties will pay between £2,500 and £7,500 per year.
Approximately 100,000 homes are expected to be affected, mostly in London and the South East. For the majority of homeowners and buyers, this is not an immediate concern, but it is worth considering for future planning, particularly in high-value areas.
Stamp duty and property taxes stay the same
The Budget confirmed that Stamp Duty Land Tax rates and thresholds remain unchanged. In addition, there are no new taxes for homes valued over £500,000.
This clarity ensures that buying, selling, and moving costs remain consistent, helping homeowners and investors plan without unexpected changes.
Rental income tax to rise in 2027
Landlords should note that from April 2027, rental income tax rates in England, Wales, and Northern Ireland will increase by two percentage points.
- The basic rate will rise to 22%
- The higher rate will rise to 42%
- The additional rate will rise to 47%
Scotland is unaffected, as it sets its own income tax rates. While this change is still a few years away, landlords may wish to review rental strategies and long-term planning.
Long-term support for commercial landlords
From April 2026, reduced business rate multipliers for retail, hospitality, and leisure properties in England with a rateable value below £500,000 will become permanent. This replaces the temporary RHL relief and provides certainty for commercial landlords planning.
Property remains a strong investment
Despite upcoming tax changes, UK property continues to offer a secure and attractive long-term investment. Rental demand remains high in many regions, yields are competitive, and property can provide both steady income and long-term capital growth.
During periods of economic uncertainty, tangible assets like property often provide more stability than financial markets. With careful planning and professional advice, landlords and investors can continue to achieve reliable returns.
Regional implications are mostly limited
The new £2 million surcharge will predominantly affect London and the South East. In most other regions, property values are below this threshold, meaning most homeowners and landlords will see little to no impact.
Coupled with unchanged Stamp Duty rules, this supports a steady property market across the UK outside the highest-value areas.
Other key changes on the horizon
Beyond the Budget announcements, two upcoming reforms will significantly influence landlords:
Renters’ Rights Act – Set to progress in 2026, this legislation will change tenancy management and landlord responsibilities. Whitegates will guide to help clients navigate these updates.
Making Tax Digital – From April 2026, landlords and self-employed property owners will need to maintain digital tax records and submit returns using MTD-compliant software. Whitegates is already preparing and ready to support landlords during this transition.
Planning for the future
The 2025 Budget largely maintains market stability while signalling gradual changes in the years ahead. Key points to note:
- The £2 million+ council tax surcharge begins in April 2028
- Rental income tax increases from April 2027
- Stamp Duty remains unchanged
- Permanent business rate relief for qualifying commercial properties starts in April 2026
With a solid market foundation and strong rental demand, homeowners, landlords, and investors can approach the coming years with confidence. Whitegates continues to provide expert advice to help you make informed property decisions.
