After the Autumn Budget: What It Means for Buyers

The buyer's advantage

With the uncertainty lifted, if you are ready to proceed, you are in a stronger position this winter than for some time. Sam Sproston, Senior Director at UK Sotheby’s International Realty, says that with transaction costs high and interest rates rising, the pool of buyers is smaller than in recent years, and sellers are reviewing their asking prices to attract them.

With fewer buyers in the market, you often have more choice and more room to negotiate. Many homes are taking longer to sell, some vendors will want to agree terms before Christmas, and pricing around the surcharge bands may become a point of negotiation, particularly for a home that sits close to one of them.

“Buyers in strong positions are coveted more than ever,” Sproston says. “That said, I’ve seen the best homes are still being snapped up quickly, and often with competitive interest.”

The advantage, then, lies with you if your finances are in order and you are ready to act when the right home appears, rather than waiting in the hope that prices fall.

The costs to plan around

Being ready starts with knowing what a purchase will cost. Stamp duty is unchanged in England and Northern Ireland. The rates and thresholds stay as they are, including the 5% surcharge on additional homes and the 2% surcharge for buyers who are not UK residents. Scotland and Wales set their own equivalents, and the surcharge below applies to England only.

If you held back in case the rates changed, the cost of buying is settled for now, and you can build it into your budget from the outset. Many had hoped this Budget would bring stamp duty reform, but there is no sign of it coming soon, so there may be little to be gained by waiting.

The surcharge

The High Value Council Tax Surcharge, announced in last year's Budget, begins in April 2028. It applies to homes in England worth £2m or more and is paid each year on top of council tax: £2,500 between £2m and £2.5m, £3,500 between £2.5m and £3.5m, £5,000 between £3.5m and £5m, and £7,500 above £5m.

Homes will be valued as at April 2026, with the first bills in March 2028 and the charges rising with inflation from 2029, and owners will be able to challenge their band.

The proposed premium on non-UK resident owners has not been taken forward in this Budget. Separately, it was confirmed that a home left substantially unfurnished and unoccupied for 12 months or more will pay a 100% premium.

It helps to see it in proportion. If you buy a home valued at £3m, the surcharge will be £3,500 a year, while stamp duty on the same purchase, at the standard rates, is £273,750. The surcharge is worth planning for, but it is a modest annual cost beside the price of the home itself.

Letting your current home

If you plan to keep your current home and let it, tax on property income rises from 6 April 2027 to 24%, 44% and 49%, four points above today’s rates. This is a good moment to look again at whether the sums still work, or whether selling may suit you better.

Planning the purchase

Beyond the home itself, the wider picture held steady. Capital gains tax rates did not rise, no wealth tax or exit tax was announced, and inheritance tax rates and allowances are unchanged. You can now plan a purchase within your wider finances with more certainty than a month ago, and Robert Caplan, Founder of First Wealth, suggests starting there.

"Most of the buyers we work with aren't just buying a house; something bigger is going on behind the purchase: a business sale, money coming down from parents, a move after an exit. My advice is to sort the wider finances before you fall in love with the property. Think about where the money is coming from and the tax on getting it out, how you'll own the home now pensions are being pulled into inheritance tax from April 2027, and the new annual charge on higher value homes. Get the plan right first and the purchase looks after itself."

If you are borrowing

For those who choose to borrow, Mark Harris, Chief Executive of mortgage broker SPF Private Clients, says preparation is what counts.

“Now that the Budget is out of the way, at least we have some clarity,” he says, “so buyers and sellers know what they are dealing with.

“If you are thinking of buying, you can put yourself in the strongest possible position by finding out how much you can borrow. A whole-of-market mortgage broker will review your circumstances, work out how much you can borrow and identify the best mortgage option for you.

"Securing an Agreement in Principle will demonstrate to agents and sellers that you are serious about buying. This is particularly useful if you find yourself in a competitive bidding scenario for a sought-after home.”

Your next move

The reasons for moving rarely wait for a Budget, whether it is a growing family, the right school, the wish for more space or a quieter life in the country. For much of the year, you may have been weighing one of the largest decisions of your life without quite knowing what the rules would be. That has now changed, and if you are ready, the coming months offer a quieter and clearer moment to find the right home, with more choice and more time to consider it properly than there has been for some while.

Share your search

Since the Autumn Budget, we have seen buyers returning to their searches, and others beginning them. If you are among them, we invite you to explore our collection, or share your search with our team to be introduced to homes across London and the country that you may not find elsewhere.

This article is general information, not tax, legal or financial advice.