Autumn Budget 2025: What Property Owners, Landlords & Sellers Should Watch
The Autumn Budget 2025 was originally expected in October, but Chancellor Rachel Reeves confirmed it will instead take place on 26 November 2025. The delay was designed to give the new government more time to assess public finances, consult on tax reform, and prepare a full Spending Review alongside the Budget. For the property sector, this extra waiting period has fuelled speculation around potential tax changes, leaving landlords, sellers, and investors uncertain about what’s ahead.
When is the Autumn Budget 2025?
The UK Autumn Budget 2025 is expected on 26 November 2025, delivered by Chancellor Rachel Reeves.
It follows a Spending Review and several months of rumour, speculation and pressure to plug a large fiscal shortfall.
Autumn 2025 Budget predictions for the property sector
Here are the main areas likely to affect property owners, landlords, and those considering selling:
| Tax / Policy Area | What Might Change | Property Owners | Landlords | Sellers |
| Capital Gains Tax (CGT) | • Possible higher rates, or more property transactions brought into scope • Further reductions to the tax-free allowance (annual exemption) • Potential alignment with income tax bands |
Owners of second homes or investment properties could face higher liabilities, reducing incentives to hold property long-term. | Landlords may face larger CGT bills when selling properties, limiting flexibility to restructure portfolios. | Sellers could feel pressure to complete before new rules apply, with higher bills reducing post-sale gains. |
| Inheritance Tax (IHT) | • Potential reduction or freeze of thresholds (nil-rate band) • Possible changes to gift allowances and survival periods • Inclusion of unused pension funds in estates from 2027 |
Those with estates near thresholds may face increased tax exposure and need more estate planning. | Landlords passing portfolios to family may see higher IHT liabilities, reducing intergenerational returns. | Sellers timing disposals for inheritance planning could be affected by shifting allowances. |
| National Insurance on Rental Income | • Proposals to levy NI on rental income (currently exempt) • Possible banded charges with higher rates for larger incomes |
Minimal direct impact unless also receiving rental income. | Landlords could see reduced profitability; smaller operators may exit or pass costs to tenants. | Sellers may be indirectly affected as landlords offload properties due to squeezed margins. |
| Broader Property Tax Overhaul (Stamp Duty, Council Tax, etc.) | • Possible replacement of SDLT and/or Council Tax with an annual property levy • Focus on higher-value homes (£500,000+) • Restriction of main residence relief for CGT |
Owners of high-value homes could face ongoing annual liabilities, changing affordability dynamics. | Landlords with high-value holdings may face recurring costs, reshaping investment strategies. | Sellers of premium homes could see weaker demand if buyers anticipate higher ongoing tax bills. |
Autumn Budget 2025: Capital Gains Tax (CGT)
Capital Gains Tax is one of the most closely watched areas ahead of the Autumn Budget 2025. Rumours suggest the government may increase CGT rates or further reduce allowances, which would directly affect property investors and second-home owners. There is also speculation that CGT could be aligned more closely with income tax, making disposals of high-value assets significantly more expensive. For sellers, this creates pressure to consider completing transactions before the Budget, as current rules remain more favourable.
Autumn Budget 2025: Inheritance Tax (IHT)
Inheritance Tax reform is another key talking point for the UK Autumn Budget 2025. With thresholds already frozen for years, many expect further restrictions, including lower allowances or tighter rules on gifting. There are also suggestions that pension pots will be brought more firmly into the scope of IHT in coming years. For property owners, this means more estates could exceed the tax-free band, creating higher liabilities for families. Planning early (through wills, trusts, or lifetime gifts) may become increasingly important if changes are announced in November.
Autumn Budget 2025: National Insurance on Rental Income
One of the most significant new proposals is applying National Insurance (NI) contributions to rental income, which is currently exempt. This would directly impact landlords, especially those with multiple properties or higher rental yields. Depending on how the bands are structured, landlords could face reduced profitability, with some likely to pass costs on to tenants through higher rents. Smaller landlords may even consider exiting the market, which could affect overall supply and pricing in the rental sector. The Autumn 2025 Budget predictions suggest this reform is highly possible as the government looks for new revenue streams.
Autumn Budget 2025: Broader Property Tax Overhaul
Beyond individual taxes, there is growing speculation about a broader overhaul of property taxation. Proposals include replacing Council Tax and Stamp Duty Land Tax (SDLT) with an annual property levy, particularly targeting homes worth over £500,000. There is also talk of limiting main residence exemptions from CGT for very high-value homes. If introduced, these reforms would represent one of the biggest shifts in UK property taxation in decades. For homeowners, especially in London and the South East, the changes could significantly alter affordability and influence decisions about buying, selling, or holding property.
What the 2025 Autumn Budget Means for Property Owners
The Autumn Budget 2025 is shaping up to bring significant changes for anyone involved in property – sellers, landlords, homeowners. If key proposals go ahead, we could see:
- CGT rules tightening (especially for high-value homes)
- IHT thresholds stretched or otherwise altered
- New charges (such as NI) on rental income
- A broader reform of property taxation (potential replacement of Stamp Duty / Council Tax with annual property charges for certain values)
Potential considerations: Property owners could review their tax exposure, and some actions, such as selling, transferring, or investing in property, could be more favourable under current rules before changes are confirmed.
