Autumn Budget 2025: What Rachel Reeves’ Announcement Means for Homeowners, Landlords & the Property Market

Chancellor Rachel Reeves delivered her first Autumn Budget on 26 November 2025, unveiling £26bn of tax rises and several major reforms that will impact savings, investments, pensions and crucially, the property sector. At OC Homes, we’ve broken down the key announcements most relevant to homeowners, landlords, and investors.

Key Headlines From the Autumn Budget

Reeves’ Budget focuses on raising revenue, reshaping incentives, and easing cost-of-living pressures. Some of the biggest property-linked changes include:

  • A new Mansion Tax on high-value homes
  • Property income tax increases for landlords
  • Tax rises on savings and investment income
  • A continued freeze on income tax thresholds
  • Reduced Cash ISA allowances
  • Minimum wage increases — influencing affordability and household income
  • Here’s what each change means in more detail.

A New ‘Mansion Tax’ Arrives in 2028

One of the most significant announcements was the introduction of a High Value Council Tax Surcharge, more widely referred to as a mansion tax.

From April 2028:

  • Homes worth over £2 million will pay an additional £2,500 per year.
  • Homes worth over £5 million will pay £7,500 per year.
  • Charges will be based on 2026 property values, rise annually with inflation from 2029–30, and thresholds will be reviewed every five years.
  • This surcharge will be paid by the property owner, not the occupier, and collected through the normal council tax bill.

Higher Property Income Tax for Landlords

From April 2027, landlords in England, Wales and Northern Ireland will pay 2% more on property income tax:

  • Basic rate: 22% (up from 20%)
  • Higher rate: 42% (up from 40%)
  • Additional rate: 47% (up from 45%)

This follows several years of tightening rental profitability — from Section 24 mortgage interest changes to increased regulation — and forms another financial consideration for landlords planning long-term.

Savings, Dividend & Investment Tax Changes

To raise additional revenue, Reeves announced tax increases on savings and investment income.

Savings Interest (from April 2027):

  • Basic rate: 22%
  • Higher rate: 42%
  • Additional rate: 47%

Dividend Income (from April 2026):

  • Basic rate: 10.75% (up from 8.75%)
  • Higher rate: 35.75% (up from 33.75%)
  • Additional rate remains 39.35%

Income Tax Threshold Freeze Extended to 2029

The Chancellor confirmed that income tax and National Insurance thresholds — already frozen — will remain unchanged until 2028–29:

  • Basic rate threshold: £12,570
  • Higher rate threshold: £50,270
  • Additional rate threshold: £125,140

Cash ISA Allowance Cut

From April 2027, the annual Cash ISA allowance will reduce from £20,000 to £12,000.

However:

  • Over-65s can still put £20,000 into cash ISAs.
  • The total ISA allowance remains £20,000, but £8,000 must now be held in stocks & shares products.

National Living Wage Increased

Minimum wages will rise from April:

  • 21+ rate: up 50p to £12.71/hr
  • 18–20 rate: up 85p
  • Apprentice & under-18 rate: up 45p

Additional Measures Worth Noting

  • Benefits: Two-child benefit cap scrapped from April.
  • Fuel Duty: Frozen until September 2026.
  • Electric Vehicles: A new mileage-based charge begins April 2028.
  • Train fares: Regulated rail fares frozen from 2026.
  • State pension: Rising by 4.8% next April.
  • Pension salary sacrifice cap: Capped at £2,000 from 2029.

What Does This Mean for Homeowners & Landlords?
More cost pressures on landlords

The combination of higher property income tax, increased wage demands, and inflation-linked regulation means margins may tighten further. Professional advice on structuring portfolios will be key.

Potential shifts in high-value property demand

The new mansion tax may influence buying decisions among premium buyers, particularly those with multiple high-value homes.

Financial planning becomes more important

With higher taxes on savings, frozen thresholds, and reduced ISA flexibility, homeowners looking to move, invest or remortgage will need to stay informed.

How OC Homes Helps You Navigate These Changes

At OC Homes, our goal is to ensure our landlords, homeowners and investors remain one step ahead.

We provide:

  • Clear guidance on how tax and regulatory changes affect your property decisions
  • Market insights tailored to local trends in London & Essex
  • Connections with trusted financial and legal advisors
  • Support with portfolio reviews, rental strategy and long-term planning

The Autumn Budget introduces major shifts — but with accurate information and expert support, you can continue to make confident, profitable decisions.

If you’d like to discuss how these changes may impact your property or portfolio, our team is here to help.

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