What the Latest Budget Means for Homeowners, Landlords, and Renters
The recent Budget announcement brings significant changes for the property market, with new tax measures and spending plans that will impact homeowners, landlords, and renters alike. Here’s what you need to know:
Council Tax Surcharge on High-Value Homes
From April 2028, properties worth over £2 million will face an annual council tax surcharge, ranging from £2,500 to £7,500, depending on the property’s value. This will apply to owners rather than occupiers and will be collected by central government.
What does this mean?
- Homes just below £2m may become more attractive, while those above could see downward price pressure.
- Around 88% of affected homes are in London, but prime markets across the UK will feel the impact.
- A deferral scheme for cash-poor owners is under consultation.
Property Income Tax Increase
From April 2027, tax on income from property, savings, and dividends will rise by 2 percentage points.
- New rates: 22% (basic), 42% (higher), 47% (additional).
- For landlords, this adds roughly £70 per year to tax bills on average.
- The Office for Budget Responsibility warns this could accelerate landlords selling up or incorporating properties into company structures.
Impact on Renters
With landlords facing higher costs, rental supply may shrink, pushing rents up by an estimated 3% over the next few years.
Other Key Measures
- Minimum wage rises to £12.71 from April (4.1% increase).
- Fuel duty cut extended until September 2026, then phased out.
- Electric vehicle tax introduced from April 2028.
What Does This Mean for the Market?
While prime property owners may face challenges, the mainstream market is expected to benefit from greater clarity and lower mortgage rates, supporting activity and prices in the months ahead.
As Wales’ leading estate agent, we offer:
Sales, Lettings, Mortgages and Conveyancing services - expert advice to navigate changing market conditions.
If you’re considering buying, selling, or letting, now is the time to review your options. Our team is ready to guide you through these changes and help you make informed decisions.
Need advice? Contact your local Peter Alan branch today or get a free instant online valuation.
