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Budget 2025: Key Property Changes Every Landlord Should Be Ready For

Posted on Sunday, 30 November, 2025

On Wednesday, 26th November, the Chancellor of the Exchequer delivered the 2025 Budget Statement in the House of Commons. We have put together some brief key points affecting property owners.

What’s favourable / brings clarity

There will be no new annual property tax on homes over £500,000 — a major rumour that had unsettled many in the market.

The fact that no changes to Stamp Duty Land Tax (SDLT) were made means buyers and sellers know what transaction-costs look like — helpful for planning and valuations.

Because the “worst-case” scenarios (broad new property levies, extra SDLT, etc.) didn’t materialise, there’s likely to be a boost in confidence among mid-market homeowners: that alone could encourage more listings/transactions, which matters for market liquidity.

What’s tougher — especially for landlords or high-end owners

A new “mansion tax” will be introduced for properties valued over £2 million — effectively a High Value Council Tax Surcharge starting April 2028.
The surcharge bands are estimated as:
- £2.0–2.5 m → ~£2,500 pa
- … rising up to ~£7,500 pa for properties over £5 m.
From April 2027, income tax on rental/property income will rise by 2 percentage points: basic → 22%, higher → 42%, additional → 47%.
This doesn’t sit in a vacuum — landlords have already faced rising costs from previous changes (mortgage interest relief restrictions, regulatory compliance, upcoming changes under the Renters’ Rights Act 2025, etc.) — the extra tax burden may compress yields or push rents higher.