How Will Home Owners Be Impacted by the Mansion Tax?

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

The Chancellor, Rachel Reeves, has announced the Autumn Budget, setting out several changes that will influence the property market over the coming years. Despite strong expectations of a stamp duty update, no changes have been made. Instead, the headline news is a new tax aimed at higher-value homes, along with an additional 2% income tax on rental income, something landlords will need to factor into future planning.

Mansion Tax for Homes Above £2 Million

From April 2028, properties valued above £2 million will be subject to a new annual mansion tax, paid by the homeowner. Homes between £2 million and £5 million will see a £2,500 yearly charge, increasing to £7,500 for properties exceeding £5 million. This will be applied on top of existing council tax liabilities.

Although only a small percentage of homes fall within this bracket, less than 0.5% of agreed sales nationally this year, the top end of the market has already begun to react. Sales agreed over £2 million are down 13% year-on-year, suggesting the sector has been adjusting to the expected changes for some time.

When Will This Be Introduced?
The mansion tax will take effect from April 2028.

How Will Homeowners Be Impacted?
Charges will vary depending on the property’s valuation,

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