Key Property Announcements from the November 2025 Budget, What They Mean for the Housing Market
The Chancellor, Rachel Reeves, delivered her latest Budget yesterday, outlining a series of tax changes designed to address the UK’s wider fiscal pressures. While the package included several increases across the economy, the property sector emerged with greater stability than many anticipated.
For months, speculation suggested sweeping reforms might be on the horizon from significant adjustments to Capital Gains Tax to new levies on rental income. In the end, the measures announced were more targeted, affecting only particular segments of the market. Below, we outline the key changes and what they could mean for homebuyers in areas where Kebbell builds.
No New Annual Tax on Homes Over £500,000
One of the most reassuring announcements was the confirmation that there will be no new annual tax on properties valued above £500,000. This decision removes uncertainty for homeowners and buyers across the country, particularly in regions where many properties sit above this threshold.
By maintaining the current system, with stamp duty remaining a one-off payment at the point of completion, the Government avoids creating an annualised financial burden that could have affected affordability and distorted demand. The existing Stamp Duty rules, including the £300,000 first-time buyer threshold, continue unchanged.
For buyers exploring Kebbell communities, this sense of continuity provides a steadier and more predictable environment in which to plan a move.
A New High-Value ‘Mansion Tax’ for £2m+ Homes
The Budget did, however, introduce a new high-value council tax surcharge, widely referred to as a ‘mansion tax’ , on properties worth more than £2 million, coming into effect from 2028. Homes valued above this level will incur an additional annual cost of around £2,500, while properties above £5 million will see a charge closer to £7,500.
Because the measure targets only the top end of the market, concentrated largely in London and the South East, it will not affect the vast majority of households. While it may prompt some movement among owners of very high-value homes, the impact on mainstream residential markets, including areas in which Kebbell develops, is expected to be minimal.
Increased Property Income Tax Rates for Landlords
From April 2027, landlords will face a 2% rise across all rates of income tax applied to property earnings, taking them to 22%, 42% and 47%. This follows last year’s increase in stamp duty on additional property purchases from 3% to 5%, as well as ongoing regulatory changes such as new energy standards and the provisions of the Renters’ Rights Act.
While rising costs continue to put pressure on some landlords, rental values have climbed 25% over the past five years, helping to support returns. The latest tax adjustment may encourage some landlords to reassess their portfolios, but experts expect continued demand for high-quality rental homes.
What This Means for Buyers Considering a Kebbell Home
For those looking to buy a new Kebbell home, the November 2025 Budget delivers welcome stability. The decision not to introduce widespread annual property taxes helps maintain confidence, while the new surcharge on £2m+ homes affects only a small fraction of the market.
The broader property landscape continues to evolve, but the core message is clear: most homebuyers remain unaffected, and the environment for purchasing a new-build home is expected to remain steady as we approach 2026.
If you have questions about how the Budget may influence your homebuying journey, our sales teams are always here to help.