Budget Update: What Today’s Tax Changes Mean for Property Owners, Landlords and Investors

The Chancellor, Rachel Reeves, has delivered her second major Budget – and with it comes several tax changes set to impact homeowners, landlords and property investors across Surrey, Hampshire and Berkshire. While some measures may appear challenging at first glance, there are also positives for the market, including greater certainty, renewed economic stability and potential opportunities for those considering their next move.

Below, we break down what’s been announced – and what it truly means for the property market in Surrey, Hampshire and Berkshire.

Property Income Tax Rates to Rise by 2%

Reeves confirmed that both the basic and higher rates of tax applied to property income and savings income will increase by 2 percentage points.

Key points:

• Expected to raise £2.1bn.
• 90% of taxpayers will not pay tax on savings.

While higher tax on property income may concern some landlords, it often leads to increased portfolio reviews. These changes make strategic planning even more valuable. Whether you’re exploring restructuring or expanding your portfolio, our lettings specialists can help guide your next steps.

Thinking of reviewing your portfolio? Speak to our team.

‘Mansion Tax’ Introduced for High Value Homes

A new annual surcharge will apply to a small number of high value homes:

• £2,500 per year for homes valued over £2m
• £7,500 per year for homes valued over £5m

Collected via council tax, this surcharge is expected to raise £400m by 2031 and applies to fewer than 1% of UK properties.

This is a targeted measure, not a broad one. Premium properties in our region remain highly desirable, and motivated buyers in the £2m–£5m+ bracket are unlikely to be undeterred by relatively small annual charges. Lifestyle remains the key driver in this market sector.

If you own a high-value home, our Platinum Homes team can offer tailored guidance and premium market insights.

Breaking the budget down –

While tax rises capture headlines, there are several reassuring elements for the wider property market:

1. Stability and certainty support confidence

Clear long-term tax decisions help remove uncertainty – something buyers and sellers value enormously. A stable environment typically encourages stronger, more consistent demand.

2. The “mansion tax” affects very few homes

The core market across Surrey, Hampshire and Berkshire is largely unaffected, keeping mainstream buyer confidence intact.

3. No change to Stamp Duty or LHA

Despite speculation, Stamp Duty thresholds remain untouched, and Local Housing Allowance rates stay frozen — a concern given continued affordability pressure.

4. Economic growth is forecast to improve in 2025

The OBR has upgraded next year’s GDP forecast to 1.5%, signalling stronger economic momentum – always a positive indicator for housing activity.

5. Investment-focused savings may strengthen future buyer power

New ISA rules encourage longer-term investment, supporting financial resilience for future homeowners.

6. Infrastructure investment boosts local desirability

Further funding for roads and EV charging points enhances the appeal of our well-connected towns and villages.

7. Change creates opportunity

Whenever the market shifts, homeowners and landlords naturally reassess their next steps. This can lead to new valuation requests, portfolio reshaping, upsizing, downsizing and fresh instructions – all of which stimulate the market.

What This Means for the Property Market

Overall, this Budget signals a shift towards:

• Higher taxation on property income
• Increased annual costs for high-value homeowners
• Greater emphasis on investment-based saving
• A mixed but largely stable economic outlook

At Bridges, we expect the property market across Surrey, Hampshire and Berkshire to remain resilient. Clear policy direction often brings renewed confidence – and the upgraded economic forecast for 2025 is an encouraging backdrop for anyone planning a move.

Need Tailored Advice? We’re Here to Help

Whether you’re considering selling, letting, relocating or reviewing your investment strategy, our team can provide clear, localised guidance tailored to your goals.

• Request a free valuation today
• Book a portfolio review with our lettings team
• Speak with Platinum Homes for high value property advice

Your move matters. Let’s plan it together.