What could happen in next week’s Budget?

Key summary: 

• Changes to stamp duty and council tax are rumoured ahead of next week’s Budget, with less than a week to go until the announcement
• Our survey of over 10,000 potential movers reveals how people are feeling about the Budget, and the impact recent months’ property tax rumours have had on their moving plans
• Nearly one in five (17%) potential movers have paused their plans due to uncertainty about changes to property taxes. Take a look at the rumours we reported on back in August 

This year’s Autumn Budget takes place on Wednesday November 26, which is later in the year than usual (it normally happens in October). In the months running up to the announcement, there have been lots of rumours circulating about potential changes to property taxes. From stamp duty reforms, to council tax overhauls and even a possible mansion tax, the uncertainty has left many would-be movers wondering what it could mean for their finances. 

What changes could be announced next week?

There’s less than a week to wait until we’ll have certainty, and there are some rumoured changes that could affect the housing market. Some of the changes being talked about include:

• • Stamp duty reform: According to media reports, the government is said to be looking at replacing stamp duty with a proportional national property tax for homes worth over £500,000. If it happens, this would be a pretty big shift in how property taxes work. Right now, buyers usually pay stamp duty as a one-off cost when they purchase a home, with the amount based on the property’s price. Under the system being rumoured, sellers — rather than buyers — would pay the tax. Drawing on research from a think tank that officials are thought to be considering, the rate could be around 0.54% each year on the portion of a property’s value above £500,000, though the exact rate would be set by the government. Read more about this potential change here.

• • Mansion tax: There’s also talk of a possible ‘mansion tax’ for homes worth more than £1.5 million. Under this plan, sellers would lose private residence relief and instead pay capital gains tax on any increase in the property’s value — 24% for higher-rate taxpayers and 18% for basic-rate taxpayers. Our data shows this would mainly affect London, where around 11% of homes for sale are priced above £1.5 million, compared with just 1.6% outside the capital.

• • Council tax changes: Reports that the government could be looking at replacing council tax with a new local property tax. The idea being floated is a 0.44% annual charge on property values between £80,000 and £500,000, with homeowners paying at least £800 a year, capped at around £2,200 for properties worth £500,000. A big change here is that the bill would fall to property owners rather than the people living in the home, which would be a major shift from how council tax works now.

• • Landlord tax on rental income: At the moment, a landlord’s earnings from renting out a home are exempt from National Insurance in many cases. In future, all landlords could pay National Insurance at a basic rate of 20%, and an additional rate of 8% for property earnings above £50,270 a year.

How are people feeling about next week’s Budget?

We surveyed over 10,000 people who are either actively moving or considering a move, and the results show how people have reacted to the rumours. Nearly one in five (17%) told us they’ve put their plans on hold until they have more certainty about what the changes will mean for their home moves. 

The majority of people (61%) also told us they were aware of the rumoured changes, and of this group, nearly eight in 10 (79%) said they were concerned about what might be announced. 

People aged 55 and over were the age group where most people said they were concerned, which might not be surprising, given that many of the rumoured tax reforms would affect homes at the top end of the market. The South East and South West – where property prices tend to be higher – were where most people said they were concerned. 

What’s happening in the housing market right now?

The findings in our latest House Price Index point to some hesitancy at the upper end of the market – which would be disproportionately affected by the rumoured changes we’re seeing in the wider media. Sales agreed for homes priced at £2 million and above are down 13% year-on-year, while homes between £500,000 and £2 million have seen sales agreed drop by 8%. 

Colleen Babcock, our property expert, says: “Our latest House Price Index showed how market activity is being affected by the various property tax rumours being discussed ahead of the Budget. Now, we’ve heard directly from home-movers about how it’s denting their confidence, with some preferring to wait until after the Budget to see how any policy announcements affect their plans.  

While most movers are carrying on as normal, it demonstrates how unhelpful the uncertainty over potentially costly changes can be. I think most are now fed up with the rumours and would like to see the final contents of the Budget and assess how they’re impacted.” 

We’ll be covering the Budget announcement in full on 26 November, with a detailed update on what it means for home movers. Sign up to our newsletter to get the news straight to your inbox. 

READ MORE: November 2025 housing market update