The upcoming Autumn Budget is expected to address competing fiscal pressures, with property taxation emerging as a key area of discussion. Stamp Duty, which currently generates approximately £12 billion annually, is a focal point, alongside debates over replacing transactional taxes with recurring property taxation.
From April 2028, a Council Tax surcharge will be introduced for properties valued at £2 million or more. There is speculation that this threshold could be lowered to £1.5 million to increase revenue. Both the Reform and Conservative parties have indicated they would consider abolishing Stamp Duty if elected, though this would require alternative revenue sources.
The buy-to-let sector faces increased income tax rates on property income from April 2027, with rates rising to 22%, 42%, and 47%. This follows a period where 28% more buy-to-let properties were listed for sale in the period to March 2026, which has reduced available rental stock and contributed to rising rental prices.
Housing development is also facing challenges, with planning approvals for new homes at a 13-year low. The sector is contending with increased building material costs, labour shortages, and rising borrowing rates.
The Housing Secretary, Angela Rayner, is working to revive the Help-to-Buy initiative. This scheme would offer first-time buyers a 25% equity loan from the government, initially interest-free, requiring a 2.5% deposit from buyers.