The Autumn Budget delivered by Chancellor Rachel Reeves includes a handful of changes relating to property matters.

These key changes include:
–           A ‘mansion tax’ on homes worth more than £2 million, from April 2028
–           No changes to stamp duty
–           A 2% income tax increase on rental properties, from April 2027

Read on to find out more about these changes and how they’ll affect the property market.

Homes worth more than £2 million to pay ‘mansion tax’

The annual ‘high value council tax surcharge’ or ‘mansion tax’ will be paid on top of council tax, according to the band your property falls in. If your home is valued at over £2 million, from April 2028, you will be liable to pay the rolling annual surcharge. And it will be the property owner, not the property occupier, who will pay the tax.

This is what the mansion tax bands look like:

Home Value                             Annual Surcharge
£2.0 – 2.5 million                       £2,500
£2.5 – 3.5 million                       £3,500
£3.5 – 5.0 million                       £5,000
£5+ million                                 £7,500

To identify which bracket a property falls into, the government confirms there will be a regular ‘targeted valuation exercise’ carried out every 5 years.

Will the mansion tax make a difference?

The data from Rightmove shows that less than 0.5% of all home sales agreed this year have been for properties with an asking price of over £2 million. And around 1% of homes for sale are priced above this threshold. However, if we look at this region, around Altrincham covering Hale, Bowdon and Hale Barns, it’s fair to say there is a higher than average percentage of homes which fall into the over £2 million asking price bracket.

There is concern that this tax will disproportionately affect areas where property is valued the highest, such as London and the South East. The stamp duty changes which were made back in April 2025 are still being felt in these areas. And while this new tax is aimed at high-value properties, experts hint at an inevitable ‘trickle-down effect’ on the rest of the market. If sales slow down at the top end, this will be felt by all types of buyers elsewhere, from first-time buyers to families looking to upsize.

And in our region, with a higher than average number of high-value properties, we could see the same.

No changes to stamp duty in the budget

There had been talk, with rumours swirling around the industry over the government potentially changing stamp duty again in this budget. However, there were no changes to stamp duty announced in the autumn budget.

Landlords face 2% rise on rental income tax

Landlords face more pressure as from April 2027, income tax on rental income will rise by 2%. According to the Chancellor, the tax hike will raise an additional £0.5 billion in revenue. There were rumours that landlords might be hit with paying National Insurance on rental income, but this didn’t materialise. Instead, from 2027, the basic, higher and additional rates of income tax on property and rental income will rise to 22%, 45%, and 47% respectively.

What effect will these tax changes have on landlords?

On top of stamp duty increases from April 2025, the cost of compliance changes with the new Renters Rights Act coming in 2026, and current buy-to-let mortgage rates, a lot of landlords, especially those with smaller portfolios, will struggle.

One of the first moves we can foresee landlords making is increasing rents to offset the additional costs. If this is done, hard-working tenants will be hit hard, especially as rents are already exceptionally high. But there’s another fear, which is more likely if landlords only have one or two rental properties, or a low rental yield. And that is that we may see them choose to leave the rental market entirely. And as we’ve already seen here in Altrincham, a squeezed rental market only creates a bigger supply issue, and even higher rents because of it.

General affordability a cause for concern following the Autumn Budget

While it’s not a change which affects the property market directly, there is worry that the chancellor’s decision to freeze the income tax thresholds over the next 3 years will increase affordability pressures on homeowners. Usually, tax thresholds rise with inflation or average earnings. By freezing them, with ‘fiscal drag’, individual pay increases are likely to push more households into the higher 40% tax band. While the Chancellor hasn’t raised the rates of income tax for individuals, the burden of income tax will affect many at an already difficult time.

How such affordability issues may impact the property market, we will have to wait and see. But we do know that the Altrincham region includes a higher than average percentage of people who work in higher and lower managerial or administrative professional positions.

What advice do we have for homeowners and landlords in Altrincham?

Now we have seen the results from the Autumn Budget, people looking to move home should be able to do so with confidence. The market is still moving, and this region remains attractive for buyers, for families and professionals alike.

Some of the changes we have mentioned here don’t kick in for another couple of years. 2027 for the landlord income tax changes and 2028 for the mansion tax levy. This gives you time to reflect on how these changes may impact you and what action you should take.

If you do need support, advice or guidance on what’s best to do, especially if you’re a landlord or looking to sell your home, then contact us to discuss your circumstances. You can call the office on 0161 941 4445.

Properties in Altrincham and the surrounding areas remain in high demand. If you’re looking to rent your home or sell your home in 2026, contact us for a free valuation and advice. We specialise in the local Altrincham property market, so you can be sure you’re getting the best service.