Autumn 2025 Budget Highlights: Property Taxes, ISAs & What’s Staying the Same
Autumn 2025 Budget Highlights: Property Taxes, ISAs & What’s Staying the Same
The Autumn Budget didn’t arrive with a big bang, thanks to a leaked document the morning of the announcement and the awful, prolonged trailing, in the court of public opinion, of most changes, and the contents failed to live up to the hype.
While there were no earthshattering statements, practically everyone will miss a few pounds here and there. That’s unless you’re a landlord, a saver, an electric vehicle owner or the title holder of a £2 million + property.
Viewber rounds up this Autumn’s Budget highlights through a property-focused lens.
What’s going UP?
Tax applied to rental income
On the list of possible Budget reforms was an increase to income tax but, overall, the nation came away unscathed. There will be no increase in the income tax applied to wages but money for the Government will be generated elsewhere.
Sadly, landlords have taken a direct hit. The tax applied to rental income will rise by 2% from April 2027. From then, rental income will be subject to income tax of 22% at the basic rate, 42% at the higher rate and 47% at the additional rate. Income from savings and dividends will also be subject to this new higher tax.
For many, it’ll be the final straw – owning property isn’t about making money for the vast majority of PRS landlords, it’s about maintaining the property’s fabric – for a lot this latest change will tip them in to enough loss to bail out. Less property + more demand = rising rents.
Annual bills for owners of the most expensive homes
It’s an idea that has been floated so often that the term ‘mansion tax’ already feels familiar. Finally, the Autumn Budget 2026 saw the initiative come to fruition. There’s some groundwork to do first, so this new tax will not come into force until 2028.
Firstly, homes in council tax bands F, G and H will be re-evaluated by the Government’s Valuations Office Agency. This will be completed in 2026 – the first time any bands have been scrutinised since 1991. As a result, many homes will move to a different band, especially as house prices have risen significantly in 34 years.
Homes worth more than £2 million will be subject to an extra annual charge in addition to council tax. This yearly sum will be between £2,500 and £7,500, value dependent, and there doesn’t seem to be any exemptions or reliefs. There are, however, rumours that asset-rich, cash-poor owners may be able to defer tax payments until their death. Experts think around 100,000 homes will be affected by the mansion tax, with hopes of generating £400 million by 2031.
Again, a misunderstanding as those buying or living in expensive property spend a lot in their local economy, creating jobs and indirect tax. Buying a ‘big expensive’ property is aspirational – stop people buying them and UK Property PLC loses a lot of value.
What’s going DOWN?
Tax-free Cash ISA allowance
The Government still wants us to ‘save, save save’ but the Chancellor is manipulating where we stash our cash. ISAs are favoured among savers, including those squirrelling money away for a property deposit, as they allow up to £20,000 to be saved tax free.
The Budget revealed changes from April 2027, but they will only apply to those under the age of 65. The overall tax-free cap of £20,000 remains but savers will be limited to putting £12,000 in cash ISAs annually. If they want to save more, the rest of their allowance – up to £8,000 – must be saved in stocks and shares ISAs. The bravest and boldest savers will be rewarded – if £20,000 is saved exclusively in stocks and shares ISAs, the total amount will be tax free.
Many first-time buyers may be wondering how this news affects the LISA – the lifetime ISA that rewards those saving for a deposit. Although no LISA changes were announced in the Budget, the Chancellor did say a consultation on LISAs was due in 2026, with strong indications they will be scrapped and replaced with a simpler alternative.
Domestic energy bills
Although not a headline announcement, homeowners should note the positive implications of some changes in the energy market. Household energy bills should reduce by around £150 a year thanks to the Government defunding the ECO scheme and removing green levies.
What’s staying the SAME?
Stamp duty
Stamp duty has long been thought of as a political cash cow, and some experts were convinced the chancellor would amend the bands or thresholds to generate extra revenue. People were even predicting the demise of stamp duty altogether, with a radical idea that it would be replaced with a new surcharge applied to sellers of homes worth more than £500,000.
On the day, however, stamp duty didn’t even get a mention. While buyers can purchase with confidence that their stamp duty bills won’t be more extensive in the near future, the Government has missed an opportunity to help first-time buyers. Their current nil rate remains at £125,000, despite house prices continuing their upward creep.
Those active in the property invest market will be pleased that Reeves also left the higher rates of stamp duty – applied to buy-to-let purchases – the same. It was thought increasing this would form part of a wider picture to push private landlords out of lettings.
A trio of key taxes
There were some alarming rumours before the Autumn Budget surrounding a trio of fiscal fundamentals, but the Chancellor tried to keep to her promise of not raising taxes. While income tax on rental income, savings and dividends did rise, Reeves chose to leave inheritance tax, capital gains tax and corporation tax at their current levels.
These taxes are integral to the property market, with corporation tax paying an increasingly important role in property investment due, in part, to more private landlords purchasing and holding buy-to-lets in limited companies.
While the very best outcome would have been to lower the inheritance, capital gains and corporation tax rates, or increase the thresholds, many in the property industry will be relieved the Chancellor didn’t tinker to plug the Government’s financial black hole.
Council tax bands A to E
Many think the current council tax bands are not fit-for-purpose because, as we have mentioned, they were last reviewed in 1991. As a result, many people in smaller, less valuable homes are paying the same, or even more, council tax, than larger more expensive properties. The Government has, however, decided to leave council tax bands as they are for now.
Income tax rates on wages
While not a direct property announcement, it’s worth noting the Chancellor extended the freeze on income tax applied to wages, continuing the current rates until 2031. This announcement means that, as time progresses, more people will fall into higher tax brackets by simply getting a pay rise, earning interest on savings or collecting rental income. Those most at risk are those who currently earn just under the income tax threshold above them.
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