What Stays the Same (Good News for Most People)
Stamp Duty Land Tax (SDLT) unchanged
Rumours of major stamp duty reform did not materialise. This means no new charges for buyers and no additional barriers for those hoping to move home. The existing thresholds remain in place.
No new taxes on typical homes
The Budget did not introduce any new charges for the vast majority of properties. If you own, are selling, or are buying a standard-value home, the Budget will not impact your plans.
Tenants unaffected by Budget changes
No new rent-related measures were announced, so tenants should not see any Budget-driven increases. Wider market conditions may still influence rents, but the Budget itself does not introduce new costs.
Where There Are Changes
Higher tax on rental and property income (from April 2027)
Landlords will see a 2% rise in the tax rates applied to property income. Basic, higher and additional rates will increase to 22%, 42% and 47% respectively.
This may reduce net yields and could influence landlord decision-making over the next two years.
New council tax surcharge for high-value homes (from April 2028)
Properties valued over £2 million will face an annual surcharge on top of standard council tax. Charges will range from £2,500 to £7,500 per year, depending on the value band.
This affects only a small proportion of properties but may shape demand and pricing at the top end of the market.
What This Means for the Local Market
For the majority of our clients in County Durham and the wider North East, the Budget is essentially neutral. Most homes fall well below the high-value thresholds, and typical buyers and sellers will notice no change in costs or process.
The rental sector may see gradual adjustments as landlords plan ahead for the 2027 tax rise, but there is no immediate impact for tenants.
Our View at Toast Estates
Overall, this is a steady Budget for the mainstream market. If you’re considering a move in 2025 or 2026, there is nothing in the Budget that should delay or derail your plans.
For landlords and high-value homeowners, now is a good time to review long-term strategies — and we’re here to help you assess how these changes could affect your property decisions.
If you’d like tailored advice or a no-obligation property review, please get in touch with the Toast Estates team.
