The most anticipated budget of recent times has taken place and reassuringly it brings only minor changes to the UK property market.
The weeks leading up to the budget were beset by leaks from within the treasury which suggested a range of measures were being contemplated that would have had a profound effect on the housing market. According to these leaks, stamp duty changes were at one stage being actively considered and capital gains changes to both buy to lets and even principal properties were also allegedly under discussion.
In the event, neither measure made it into Rachel Reeves’ red box, which will be a relief to both buyers and sellers. On the flip side, we didn’t see any reduction in property-related tax thresholds, but given the current economic environment it was probably wishful thinking that the housing industry would see this type of stimulus. However with stamp duty rates remaining unchanged, buyers can move forward without facing any additional upfront costs, helping to keep the market accessible and encouraging continued confidence.
Mansion Tax
One of the changes that has been announced is the introduction of a surcharge on high-value properties, called the “Mansion Tax”. From April 2028, homes in England valued at £2 million or more will face an annual charge, which would be paid alongside Council Tax.
In Nottinghamshire, only a very small number of homes fall into this bracket, so the vast majority of the local market is unaffected. This means buyers and sellers can continue to move with confidence, and the market remains active and healthy.
Tax Increase on Rental Income
Another change that received little attention in Rachel Reeves’ speech was the increase in tax on rental income from April 2027, with rates rising by 2% across all tax bands. This is expected to raise half-a-billion pounds a year from 2028-2029. Whilst this will be a disappointment to landlords, they can be reassured that they continue to operate in a market with strong tenant demand and healthy rental yields.
Overall, property investment continues to be a reliable and profitable option in the region, and landlords can continue to benefit from steady demand.
Today’s budget changes give the appearance of leaving things largely unaffected in the local Nottinghamshire market meaning now is a great time to make a move.
Whether you’re a buyer, seller, landlord or tenant, the market remains steady and active. At David James, we have been selling homes in the local market for over 34 years and our team have over 500 years of combined estate agency experience. Therefore we can guide you through every step of the process.
Get in touch to see how we can help with your next move!