The Autumn Budget (part 2)

Yesterday’s Autumn Budget could have been better for Surrey and Hampshire property owners – but it could have been a lot worse. Part 1, which we published in the runup to the Budget, covered what might happen. Having reflected on yesterday’s announcement and distilled the property-related items contained in the Chancellor’s announcement, here’s what has happened in the context of the Surrey and Hampshire property market.

1. Mansion Tax

This is the big one. From 2028, properties in England valued at £2m and over will be subject to a council tax surcharge – dubbed the Mansion Tax. There will be four thresholds, each of which will attract their own level of tax. For instance, properties valued between £2m – £2.5m will pay an additional rate of £2,500. Those worth £2.5m – £3.5m will be charged £3,500. Properties in the £3.5m – £5m band will face an additional charge of £5,000, with owners of properties worth over £5m having to pay a whopping £7,500. Importantly, this applies to the owner and not the occupant, so it’s not a tax that can be avoided simply by renting a high-value property.

From 2028, this may lead to a less competitive market for high-value homes. Equally, this may increase demand for properties worth £2m and below, of which there are many in Surrey and Hampshire.

2. Lukewarm for landlords

We did suspect that landlords’ income would be targeted – albeit in the form of National Insurance hikes. However, the Chancellor has decided to target income tax instead. From April 2027, income tax on landlords’ rental income will increase by two per cent, cutting into buy-to-let landlords’ net profits. Whether or not this will be built into tenants’ rent prices remains to be seen, but this move does place additional pressure on a buy-to-let sector which, from a landlord’s perspective, continues to get squeezed.  

3. Stamp Duty Land Tax freeze

Onto the good news, then. Whilst we expected an overhaul in Stamp Duty Land Tax (SDLT), it (thankfully) never came. The result, therefore, means that buyers can continue with their plans based on existing SDLT thresholds. The anticipation of a major change led to a slowdown in demand for property in the lead up to the Budget, as homeowners bided their time to see what Budget Day revealed. 

Now that things remain the same, we expect a surge in demand over the next few months as homeowners decide to take the plunge and begin to ready their property for sale. For buyers in 2026, expect to see a wider choice of properties come onto the market as movement resumes. For sellers, we expect to see a more competitive market straight out of the gate in 2026.

A Budget generally tends to unsettle the property market. If you have any property-related concerns and would like to speak to a property expert in Surrey and Hampshire, then simply give us a call.

Thinking about selling your property in 2026? Contact your local branch of Warren Powell-Richards to discover how we can help. Alternatively, find your nearest Warren Powell-Richards office here.