Hot Topic The Budget

This year’s Autumn Budget was billed as a “fairness” package and housing is right at the centre of that story. The Chancellor confirmed a new annual surcharge on high-value homes in England worth £2m or more, often described as a “mansion tax”. From April 2028, affected properties will pay an extra yearly levy on top of council tax, with higher bands for the most expensive homes. At the same time, there were no immediate changes to mainstream Stamp Duty for typical buyers, and the permanent Mortgage Guarantee Scheme for 5%-deposit borrowing remains in place.

 

Landlords are also firmly in the Budget spotlight. From April 2027, rental income will be taxed under new, separate “property income” rates that are around two percentage points higher than current levels, and taxes on savings and dividends are rising too. Combined with a longer freeze on income tax thresholds and changes to ISA rules, more investors and higher-rate taxpayers will steadily be drawn into paying more, even if headline tax rates don’t move.

 

For many clients, the practical takeaways are:

 

• High-value homes: Owners of £2m+ properties face an extra ongoing annual cost from 2028, which may influence decisions about holding, selling or gifting property.

 

• Landlords: Higher tax on rental profits and related investment income will squeeze net yields and cashflow, making structure, gearing and protection planning more important.

 

• Savers and would-be buyers: Freezes to tax thresholds and tweaks to ISAs and pensions will change where it’s most efficient to build deposits and long-term wealth.

 

The common thread is that housing and wealth are being asked to “do more of the heavy lifting” for the public finances, with many of the changes phased in over the next 2–3 years rather than overnight. Your AWS adviser can help you map these Budget measures onto your own plans – whether that’s buying a first home, managing a portfolio or reviewing how property fits into your wider financial strategy.