Latest Budget News (2025) – Mansion Tax

Autumn Budget 2025: What the Latest Measures Mean for the Housing Market

The Chancellor, Rachel Reeves, has released the Autumn Budget, outlining several changes that will shape the property market over the next few years. While many expected an update to stamp duty, no amendments have been made. Instead, the main headlines include a new tax for higher-value homes and an additional 2% income tax on rental income—important considerations for both homeowners and landlords in and around Pinner.

New Mansion Tax for Properties Over £2 Million

From April 2028, properties valued above £2 million will be subject to an annual mansion tax, payable by the owner. Homes between £2 million and £5 million will face a £2,500 yearly charge, rising to £7,500 for those worth more than £5 million. This charge is in addition to standard council tax.

Although this affects only a small proportion of homes nationally, less than 0.5% of agreed sales this year, there are already signs of cooling at the upper end of the market. Sales agreed over £2 million have fallen 13% year-on-year, suggesting that buyers and sellers have been preparing for potential policy changes for some time.

When Will the Tax Take Effect?
The new mansion tax will be introduced in April 2028.

How Will Homeowners Be Affected?
Annual charges will depend on the property’s valuation.