As a long-established, family-owned and run estate agency serving the local areas Acres is committed to keeping our clients fully informed about changes that may affect the property market.
Chancellor Rachel Reeves has now delivered the Autumn Budget, setting out tax measures aimed at addressing a reported £20bn fiscal shortfall. Following months of speculation around potential sweeping property tax reforms—including rumours of new annual taxes on homes over £500,000, changes to capital gains tax, and levies on rental income—the final announcements have proved more limited than anticipated.
Below is our summary of the key points and what they could mean for the market locally and nationally.
1. Landlords: 2% Increase in Income Tax on Rental Income (from April 2027)
Landlords will see property income tax rates increase by 2%, meaning the new rates will be:
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22% basic rate
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42% higher rate
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47% additional rate
This builds on last year’s rise in stamp duty on additional homes (from 3% to 5%) and comes alongside incoming regulatory requirements under the Renters’ Rights Act and enhanced energy efficiency rules.
How this may affect the rental sector:
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Net returns for landlords will fall further after several years of increased costs.
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Some landlords may look to increase rents, which are already 25% higher than five years ago.
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Others—particularly those with smaller portfolios—may choose to exit the market, adding supply to sales but tightening rental availability.
At Acres, we anticipate continued pressure on supply, which remains a significant driver of rental prices both locally and nationally.
2. Stamp Duty: No Changes Announced
Despite intense speculation—especially rumours of a new annual charge on homes valued over £500,000—the Chancellor confirmed no changes to the stamp duty system.
This provides stability:
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Buyers will continue to pay stamp duty on homes over £125,000.
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First-time buyers retain relief up to £300,000 on purchases up to £500,000.
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Sellers will not be forced to adjust pricing strategies to absorb an annual tax.
Although the system remains unchanged, it is worth noting that stamp duty price bands were set a decade ago, meaning average buyers are paying more over time as property values have increased.
3. When Will the Market Feel These Changes?
The phased introduction of policy changes means that the wider impact will unfold gradually:
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Landlord income tax increases: April 2027
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Mansion tax: April 2028
With uncertainty now lifted, many home-movers can plan with more confidence. Although the very top end of the market may pause for reassessment ahead of the 2028 surcharge, the majority of UK households remain unaffected by the new measures.
In Sutton Coldfield and surrounding areas, where most transactions are comfortably below the £2 million mark, we expect activity to stabilise rather than slow, with continuity in stamp duty helping restore momentum.
4. ‘Mansion Tax’ Introduced for Homes Worth Over £2 Million (from April 2028)
A new annual surcharge—informally referred to as a mansion tax—will apply to homes valued above £2 million. This is payable by the owner, not the occupier, and is charged in addition to council tax.
Annual surcharge bands:
| Property Value | Annual Charge |
|---|---|
| £2.0–2.5m | £2,500 |
| £2.5–3.5m | £3,500 |
| £3.5–5.0m | £5,000 |
| £5m+ | £7,500 |
The government will carry out a targeted valuation exercise every five years to determine which band applies.
Nationally, only a small proportion of properties fall within this threshold, and the impact will be concentrated primarily in London and the South East, where higher-value homes are more common.
However, as with most taxation affecting the upper end, there is a likely trickle-down effect that can influence buyer behaviour below these thresholds. Markets may edge slower, particularly as we approach the 2028 implementation date.
Acres View
At Acres, we believe that stability, clarity, and confidence are essential for healthy market activity. While certain aspects of the Budget introduce additional cost pressures, particularly for landlords and the premium sector, the absence of major changes to stamp duty will be welcomed by the majority of movers.
Whether you're considering selling, buying, renting, or investing, our experienced team across all four offices is here to offer honest, informed advice tailored to your circumstances.
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If you would like to discuss selling your home, please get in touch with us This email address is being protected from spambots. You need JavaScript enabled to view it. or call any of our busy, helpful teams/offices:
Four Oaks 0121 323 3088
Sutton Coldfield 0121 321 2101
Walmley 0121 313 2888
Great Barr 0121 358 6222
Lettings 0121 312 4997
Mortgages 0121 387 1616
Thank you for reading this article, and your interest in Acres and our property for sale.
Nigel & Jayne Deekes – Acres Partners
