Stamp Duty (SDLT)
We have long advocated for SDLT reform to remove barriers in the market, particularly for downsizers. However, Prime Minister Andy Burnham has ruled out any changes to Stamp Duty in this Budget. Therefore, buyers should budget around current rate thresholds rather than holding out for near-term relief.
High Value Property Surcharge (“Mansion Tax”)
The High Value Council Tax Surcharge for homes valued at £2m or more is planned to take effect in April 2028. Whilst speculative reports hinted at lowering the threshold to £1.5m, the Treasury has already formally ruled this out. Significantly, although collection starts in 2028, valuations will be benchmarked to estimated market values as of April 2026.
Owners of properties near the £2m mark should therefore retain appraisals and valuation records from earlier this year as evidence for future Valuation Office Agency (VOA) assessments. The surcharge will impact less than 1% of UK properties nationwide.
Capital Gains Tax (CGT)
Despite earlier speculation that property CGT rates might rise to align with Income Tax, late-October briefings confirm the Chancellor is unlikely to raise CGT on residential property. In particular, landlords preparing for scheduled 2027 property income tax adjustments could gain welcome stability, avoiding an immediate CGT increase on their portfolio sales.
Support for First-Time Buyers
The headline proposal is the government’s Your First Home scheme for newly built properties. The scheme comprises a 2.5% buyer deposit with a 20% government equity loan and a 77.5% standard mortgage. It would include an initial interest-free period on the equity loan, subject to the regional price cap and income criteria. Further details on eligibility and participating developments are expected during the Budget speech.
Streamlining the Buying Process
The Budget is anticipated to push forward non-tax reforms to reduce sale fall-throughs. Key initiatives include requiring key property information upfront and introducing binding conditional contracts, aiming to give buyers and sellers earlier transaction certainty.
For Sellers, targeted pricing from day one remains vital to capturing active demand and if executed efficiently, can often result in a higher price achieved.
For Buyers, we’d recommend focusing on long-term property value and affordability, rather than waiting for hypothetical policy shifts.
Next Steps
Delaying a move based on Budget speculation is rarely necessary. Your personal timeline and financial readiness matter far more than tax headlines. At Mackenzie Smith, our regional teams across North Hampshire, Surrey, and Berkshire can provide advice tailored to your property, location and circumstances to help you navigate changing market conditions.
Planning your next move? Contact your local branch today for expert advice or request a free, no-obligation property valuation, here.
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