What the Autumn Budget 2025 means for the housing market

Following this week’s Autumn Budget, the property market finally has clarity on several key policies that will influence the sector over the coming years. While some of the announcements have raised questions and concerns, it’s important to look beyond the headlines and consider what these changes may really mean for buyers, sellers, landlords and investors.

Two of the most significant updates include:

Although framed as a tax on high-value households, the implications are far wider. Many long-standing homeowners—particularly retirees—have seen their property values rise substantially over the years. Some may now fall within the mansion-tax threshold despite having modest, fixed incomes. For these households, the annual charge may prompt difficult decisions, including the possibility of downsizing sooner than planned.

Areas such as Hackney, Brixton and other parts of London also highlight a growing issue: younger professional families who bought many years ago are now asset rich but could be cash poor. These households may struggle with the introduction of a mandatory annual tax they never anticipated when purchasing their home.

The policy could also create a price cliff edge around the £2m–£2.25m range, with buyers and sellers potentially adjusting values to avoid the charge. This may lead to artificial downward pressure within certain brackets.

The additional 2% tax on property savings and dividend income adds another layer of pressure on the Private Rental Sector, which has already experienced substantial regulatory and tax reform over the past decade.

While institutional landlords may be able to absorb the increase, many smaller or accidental landlords, those holding one or two properties as a pension strategy, will be forced to reconsider the long-term viability of their rental homes. If these landlords choose to exit, rental supply may contract further at a time when demand across the UK and Essex already exceeds availability, placing upward pressure on rents.

Despite the scale of the announcements, it’s important to note that the measures are not immediate:

This extended timeline has already helped steady market sentiment. Financial markets, including the FTSE, rallied following the Budget—a sign that investor confidence remains resilient.

At Beresfords, we expect the property market to remain active. Many buyers and sellers who were waiting for Budget clarity are now progressing with their plans. While some may pause activity briefly over the festive period, we anticipate a strong start to 2026, driven by renewed confidence and continued demand across Essex and Greater London.

As always, the Beresfords team is here to support buyers, sellers and landlords in navigating these changes with clear guidance and market-led insight.