Autumn Budget 2025: what today’s announcements mean for the property market

The Autumn Budget 2025 has now been delivered, and while there were no major surprises on Stamp Duty or first-time buyer incentives, the Chancellor did confirm several changes that will impact the property sector over the next few years.

For buyers, sellers and landlords across Chester, today’s update is more about steady adjustment than shock measures – but some of the longer-term tax changes will shape decisions for anyone planning to buy, sell or manage rental homes.

Here’s what you need to know.

Higher property income tax rates coming in 2027

The biggest headline for landlords is the confirmed increase to property income tax rates from April 2027:

• Basic rate rising from 20% to 22%
• Higher rate rising from 40% to 42%
• Additional rate rising from 45% to 47%

These changes will apply across England, Wales and Northern Ireland.

For landlords in Chester, this means slightly higher tax on rental profits from 2027 onwards. While the increases are not immediate, many landlords will now review their portfolio to understand how these adjustments could affect long-term returns.

Although the rises are modest, they add to a decade of measures that have gradually reduced net yields, so planning ahead will be important.

A high-value council tax surcharge for £2m+ homes

From April 2028, properties valued at over £2 million will face a new annual surcharge ranging from £2,500 to £7,500 a year.

This is likely to affect a very small number of homes in Cheshire West, but it may influence activity in areas with premium rural or waterfront properties. Nationally, it will have greater impact in London and the South East.

Slower house price growth expected

According to the OBR’s forecasts shared alongside the Budget, UK house price growth is expected to:

• Rise by just under 3% in 2025
• Average around 2.5% a year from 2026
• Increase from £260,000 (2024) to just under £305,000 by 2030

This means steady growth rather than rapid rises. For buyers, this can create a more predictable market. For sellers, it suggests pricing homes accurately will be more important than ever.

Locally in Chester, where demand is consistently strong, this steady national picture may still translate into firm prices for well-presented homes, especially in sought-after areas such as Handbridge, Hoole and Boughton.

Mortgage rates likely to rise gradually

The OBR also predicts mortgage rates may increase from around 3.7% in 2024 to around 5% in 2029, slightly higher than expected earlier this year.

This isn’t an immediate jump, but a sign that the era of ultra-low rates is firmly behind us. For anyone planning a purchase in the next year, locking in a competitive fixed rate sooner rather than later could be worthwhile.

For homeowners coming to the end of a fixed deal, this means early conversations with a mortgage advisor will remain important.

No changes to Stamp Duty

Despite speculation throughout the autumn, there were no Stamp Duty reforms announced. Thresholds and rules remain unchanged.

This may feel like a missed opportunity for first-time buyers, but it does provide some certainty for anyone already in the process of buying or selling.

What this means for the Chester property market

While the Budget doesn’t deliver immediate changes to most buyers and sellers, it does signal a few trends:

• Landlords may face slightly reduced net profits from 2027
• The market is expected to grow more slowly but steadily
• Mortgage rates are likely to rise gradually over the next few years
• High-value homes may see a shift in demand after 2028
• Stamp Duty stability may help keep transactions moving in the short term

Overall, the Budget leans more towards long-term tax adjustments than big structural change. For Chester residents, the fundamentals remain positive: strong demand, limited supply and a resilient local market.