UK Budget 2025: Key Points for Property Buyers, Landlords, and Business Owners
The Autumn Budget, delivered on 26 November 2025, carried a few measures that matter if you own property, let it out, or run a business. Some are years off; others land soon enough to affect decisions you’re making now. Below is a plain-English rundown of what changed — and, more usefully, what we think it means in practice.
1. Mansion tax on homes over £2m
Effective from April 2028
A new levy is coming for properties valued above £2 million. On paper it targets the top of the market — and in London and the South East, plenty of ordinary family homes now sit above that line, so the reach is wider than the “mansion” label suggests.
Our take: Expect some cooling of demand at the top end, which could nudge values down and, for a while, hand a bit of leverage to buyers. Lenders tend to get more cautious when valuations are in flux, so anyone buying or refinancing near that threshold should plan the numbers carefully rather than assume today’s terms will hold. If you’re weighing a move in this bracket, it’s worth modelling the impact before you commit.
2. Stamp duty stays put
Despite plenty of speculation, stamp duty rates and thresholds are unchanged. The much-discussed relief for buyers didn’t materialise.
Our take: For first-time buyers hoping for a break, that’s a disappointment — stamp duty remains one of the biggest upfront costs of moving, especially in pricier areas. On the other hand, anyone who’d been sitting on their hands waiting for a cut now has one less reason to delay. The real question stays the same: affordability. Getting the mortgage structured well is where most of the room to manoeuvre actually is.
3. A 2% tax rise for landlords
From April 2027. A 2% increase aimed largely at landlords with bigger portfolios. It’s enough to make some investors rethink how their properties are held.
Our take: It’s a real dent in net rental income, and we’d expect a wave of restructuring as landlords respond — refinancing, reviewing ownership structure, or trimming the portfolio to the properties that genuinely earn their keep. None of that is one-size-fits-all, which is exactly why it’s worth running the figures with someone who does it regularly before the deadline forces a rushed decision.
4. Dividend tax up 2% — one for business owners
From April 2026. A 2% rise in dividend tax, which hits directors who take a modest salary and top up with dividends — a very common set-up for small companies.
Our take: This one has a knock-on effect that’s easy to miss: change how you draw income and you can change how a lender reads your affordability. If you’re planning to buy or remortgage in the next couple of years, it’s worth coordinating your accountant and your broker early, so a sensible tax decision doesn’t quietly shrink what you can borrow.
Where we come in
Budgets tend to generate more noise than clarity. Our job at London FS is to cut through it — 15+ years in, we’d rather tell you what actually affects your situation than add to the scaremongering. Whether you’re a first-time buyer, a landlord reworking a portfolio, or a director rethinking how you pay yourself, we can help you find the right way forward and the mortgage to match. Our 5-star Google reviews reflect how we like to work: clear advice, your interests first.
Get in touch:
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📧 enquiries@london-fs.com
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Final thoughts
The mansion tax, the landlord rise and the dividend change will shape the property and business picture over the next few years — but none of them need to catch you off guard. The buyers, landlords and owners who come out ahead are simply the ones who plan early. If you’d like to talk through what any of this means for you specifically, we’re happy to help.
