Autumn Budget 2025: What It Means for the Property Market
Josh Harris created on 28th November 2025
Clear, simple insights for homeowners, buyers and landlords — brought to you by your local Horsham property experts.
The Autumn Budget finally arrived, later than usual and surrounded by speculation. That speculation only intensified when the OBR accidentally leaked key details an hour before the Chancellor took to the stage.
Amid the noise, two big changes directly affect the housing market: a new “Mansion Tax” and higher income tax on rental earnings. Here’s what you need to know.
1. The New ‘Mansion Tax’ (High Value Council Tax Surcharge)
Starts April 2028 | Affects homes valued over £2 million
Homes worth more than £2 million will soon face an annual surcharge, officially named the High Value Council Tax Surcharge.
£2,500 yearly for homes over £2m
£7,500 yearly for homes over £5m
Paid by the owner, not the occupier
Charges rise with inflation annually from 2029/30
The valuation process is expected to be challenging. Around 30% of homes haven’t changed hands since 1995, making comparable evidence limited. Disputes and appeals are expected, which may slow transaction activity.
The Treasury anticipates fewer than 1% of English homes will fall into this category, and currently only 0.5% of sales involve £2m+ properties.
For Horsham homeowners: Very few local homes will be affected, but buyers at the high end may temporarily adopt a “wait and see” approach.
2. Relief for the £500k–£2m Market
Rumours had suggested a new annual tax on homes above £500,000, a price range that makes up around 25% of the market nationally.
The Budget confirmed that this tax will not happen, which should bring much-needed stability.
Rightmove had reported sales in this bracket were down 8% leading up to the Budget due to uncertainty. With clarity restored, demand is expected to pick back up, benefiting the 210,000 homes currently for sale above £500k.
For Horsham sellers: Many local family homes sit within this bracket, so renewed buyer confidence should help support activity as we move into 2026.
3. Income Tax Rise on Rental Income
From April 2027, landlords will pay 2% more on rental income.
New rates:
22% (basic)
42% (higher)
47% (additional)
This will reduce net profits, likely prompting:
Some landlords to increase rents, and
Others, particularly small landlords to exit the market altogether
For Horsham landlords: Now is the time to review tax positions, yields, and long-term strategy.
4. OBR Forecasts for Prices & Transactions
According to the OBR:
UK average house prices are expected to rise from £260,000 in 2024 to just under £305,000 in 2030
Growth expected:
~3% in 2025
2.5% annually from 2026
Transactions set to increase from 1.1m in 2024 to 1.3m in 2029
GDP forecast sees steady, moderate growth over the next five years
The OBR notes that previous stamp duty increases continue to weigh on turnover.
5. What This Means for Buyers & Sellers
For 99% of homeowners, nothing major is changing.
No stamp duty increases. No council tax revaluation. No additional tax on homes over £500k.
The biggest impacts apply only to the very top end of the market (£2m+ homes) and to landlords.
The biggest positive? Uncertainty is gone. And that is often what stalls the property market most.
6. What This Means for the Horsham Property Market
Here’s the local view:
Horsham sits mainly within the £400k–£900k band, so most local sellers benefit from renewed confidence.
Buyers who paused their search are expected to re-enter the market in early 2026.
Rising mortgage rates may create a more balanced market, with steady, not volatile, price growth.
Rental demand in Horsham remains strong, but landlord tax changes may reduce supply, potentially pushing rents upward.
Conclusion
The Autumn Budget 2025 brought clarity, stability, and fewer surprises than expected. For the vast majority of homeowners, buyers, and sellers, particularly here in Horsham, the key message is simple:
It’s business as usual.
With clarity restored and no major shocks to the mainstream market, confidence is expected to build as we head into 2026.
Josh opened Harris Wickens in 2023 following a successful 17 years working for a local independent estate agent. His success has been built on a vast local knowledge, coupled with a reputation for honesty, professionalism and a genuine care for his clients.
Having grown up in the Horsham area, Josh has an intimate knowledge of the local market and is experienced at selling a wide range of properties.
He lives in Horsham with his wife Helen, two young daughters and their Irish terrier ‘Teddy’, in a character cottage that they have lovingly restored and extended. He has always had a real affinity with period houses and is a keen sportsman, when time allows, he enjoys running, a round of golf or playing football.
Shortly after joining the industry in 2006, Josh obtained his NAEA Technical Award, and so has a comprehensive knowledge of the property industry which has been further enhanced through extensive training with the world’s top trainers.
