Budget 2025: what it means for the local property sector

Homebuyers, sellers and landlords in Portsmouth and Southsea are digesting the various measures impacting on residential property announced in the autumn Budget.

Among the measures the Chancellor announced:

• The owners of properties worth more than £2 million will pay a new annual tax from 2028. Dubbed the ‘mansion tax’, it is a high-value council tax surcharge of £2,500. It will rise to £7,500 per year for properties worth £5 million or more.
• Instead of a widely anticipated move to levy National Insurance on landlords’ rental income, there will be an increase in basic, higher and additional property income tax rates from April 2027. This means landlords will now pay 22%, 42% and 47% from that date, and this is anticipated to raise £0.5bn every year from 2028-29 onwards. The rise in tax on property-related income comes alongside tax increases on savings and dividend income.
• Aside from announcements affecting residential property specifically, the Chancellor revealed support for our high streets with permanently lower tax rates for 750,000 retail and hospitality properties.
• Other measures to boost growth include funding hundreds more planners across England to underpin the government’s strategy to build 1.5 million homes.
• There is also to be a ‘first-of-its-kind’ three-year stamp duty holiday for new UK-listed companies.

Expert advice

As ever, if you are anticipating a house purchase, sale, investment or rental agreement, we recommend you take well-researched advice from property experts.

We’re always here if you want to have a chat about the financial side of homebuying, selling or renting.

Most homeowners in Portsmouth and Southsea can at least be cheered that even if they do have to pay more in property-related tax, the underlying value of their asset is still generally on the up.

For more information, we highlight a range of essential indicators about the local property scene on our website that you might find useful.

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