The Budget – What it means for you

After weeks of speculation that largely froze the housing market, the Budget has finally delivered clarity.

The government has opted for a "high value Council Tax surcharge" (often called a "mansion tax") for properties worth £2 million and above. While the headline is significant, the details are less dramatic than feared:

Deferred Start: Implementation is deferred until 2028.
Narrow Scope: It affects roughly 1% of the country’s housing stock, primarily in the South East.
The Costs:
£2m – £2.5m: £2,500 per annum
£2.5m – £3.5m: £3,500 per annum
£3.5m – £5m: £5,000 per annum
£5m+: £7,500 per annum

Crucially, there were no changes to Stamp Duty.

The most relevant policy change is the increase in tax on rental and investment income which is also detailed in the Rightmove link below.

What this means for the local sales market short-term, I believe will be largely positive. The clarity will encourage buyers who have been "sitting on their hands" to finally press ahead with their plans and sellers to bring their properties to market.

We also anticipate a "bounce back" in activity—perhaps before Christmas, or certainly shortly after. The surcharge may even drive demand from sellers in higher-value areas looking to relocate to our region, where they can find better value for money. While tax changes will put some pressure on buyers' affordability, we expect a return to more normal trading conditions.

Should you have any further questions please don’t hesitate to get in touch.

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