Posted on December 1, 2025 by Tom Grant
Categorised in: Uncategorised
The dreaded budget impact
The long awaited autumn budget dropped last week, removing doubt but delivering the much-anticipated increase in taxation. Some eye watering numbers are being banded about, £26 billion extra tax of which £12 billion goes into new government spending – taxes up, spending up but no cost savings, a trajectory that doesn’t bode well for our economic future?
How will the budget effect the property market?
The headline mansion tax adds an additional annual council tax burden to properties worth more than £2 million, necessitating a revaluation process. This will undoubtedly affect values at the threshold levels and will probably have a knock on effect down the value chain. The effective increase to income tax rates (by freezing tax/NIC thresholds) will impact everyone who earns a living, plus an additional 2% tax on savings, dividends and property income (landlords). This extra tax has to come from somewhere and we think this will undoubtedly influence what buyers will want/can afford to pay for property. The effect will have to be absorbed into sale values but hopefully the market will stabilise thereafter.
Property Prospects
2025 has been a challenging year for selling property; economic pressures and political uncertainty have had a negative effect and pummelled confidence – for both buyers and sellers. The “tourist traffic” has largely withdrawn (for now anyway); these are the less committed fraternity, buyers who’d like to move but don’t really have to and sellers who want to move but only at inflated prices. This has resulted in fewer of each but a more focused balance, we’ve had less viewings but better results from active buyers. Sale agreements are steadily continuing but are hard won.
Enough of the gloom, what about next year? Well, our view is it has to get better! We genuinely think that the market has stabilised, values have adjusted to a “new normal” and the pining for the Covid numbers is almost behind us. With the budget delivered we know what we’re in for and we can all plan accordingly.
There are a lot of people who want to move but who’ve been holding back for much of this year pending an improved outlook, both buyers and sellers. I would argue that we now have a degree of certainty, as much as we ever will, and this is a good time to prepare for the next stage of property ownership. We believe there will be much more market confidence and stability in the New Year and now is the right time to start planning for your 2026 move. More confidence + more buyers + more activity = a good selling opportunity!
If you would like to talk about a potential property move next year, please do give me a call.
Tom Grant
07765 230789.
[email protected]
