The Autumn Budget 2025, scheduled for 26 November, is the UK’s only major fiscal event this year under the new ‘one budget per year’ rule. Chancellor Rachel Reeves faces a £20–30 billion shortfall due to slow productivity and rising borrowing costs, all while avoiding big tax hikes on working people.
What to expect
Rather than headline tax increases, the government is likely to focus on “stealth” measures: freezing thresholds, adjusting reliefs, and introducing targeted levies for wealthier households.
If there’s one area under the microscope, it’s property.
Property taxes are often seen as politically safer; they target wealth tied up in assets rather than income from work. Reports suggest the Treasury is reviewing several ideas that could reshape the housing and investment landscape:
1. Council Tax Reform
Updating or adding new higher-value bands could bring older, undervalued properties into line with current market prices.
Homeowners in affluent areas may see bills rise, while those in lower-value regions could benefit from fairer assessments.
2. Replacing or reforming Stamp Duty
A shift toward an annual property levy on high-value homes would smooth revenue and reduce transaction shocks. This could make it easier to move house, but more expensive to hold one.
3. Capital gains and inheritance adjustments
Expect renewed debate around aligning capital gains tax rates with income tax for second homes and investment properties.
The inheritance tax threshold may also come under review, with reliefs on property and business assets potentially tightened.
In short, property owners especially landlords, investors, and those with second homes are likely to feel the most direct impact.
These measures aim to raise revenue without directly taxing salaries, but they could significantly affect property costs and planning.
Balancing growth and revenue
Alongside fiscal tightening, the government may support investment and green initiatives in housing and infrastructure, balancing revenue-raising with long-term economic growth.
The bottom line
Property owners, especially those with second homes or investment portfolios, should watch for announcements on valuations, levies, and reliefs. These changes could influence both the cost of ownership and market behaviour in the year ahead.
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