The recent Autumn Budget brought significant property tax changes that will affect homeowners, buyers, and landlords across the UK. At Alan Batt Sales & Lettings, we’ve analysed the announcements to help you understand what they mean for the local property market and your next move.
Key Points You Need to Know
Good news for homes over £500,000: The feared new annual property tax on properties over £500,000 isn’t happening. This removes a major uncertainty that had been causing buyers and sellers to hold back in recent months.
New tax on £2m+ properties: A Council Tax High Value Supplement will apply to homes worth £2 million or more. This affects around 0.5% of UK homes, primarily concentrated in London and the South East rather than our local market.
Stamp duty remains unchanged: The current stamp duty rates and thresholds stay as they are, meaning local buyers will continue to pay modest amounts compared to higher-value markets elsewhere.
Landlords face increased costs: Property income tax rates will rise by 2% from April 2027, adding to existing pressures on landlords from recent regulations and higher stamp duty on additional properties.
What This Means for Our Local Market
The Uncertainty is Over
Over recent months, intense speculation about potential property tax changes caused many buyers and sellers to adopt a “wait and see” approach. This hesitation slowed activity across the country, including here in the Wigan area.
Now that the Budget has been announced, that uncertainty has lifted. For most buyers and sellers in our area, the changes are minimal, which means there’s no reason to delay your property plans any longer.
Relief for Higher-Value Properties
While properties over £500,000 are less common in our local market compared to London and the South, those homeowners who were worried about a new annual tax can breathe a sigh of relief. The threat of additional taxation has been removed, which should encourage renewed activity in this segment of the market.
The £2 Million Property Tax
The new Council Tax High Value Supplement on homes worth £2 million or more will have virtually no impact on our local area. This “mansion tax” is expected to affect around 0.5% of UK homes, with 85% of those properties located in London and the South East. For our clients in Wigan and the surrounding areas, this simply isn’t a concern.
Stamp Duty Considerations
With no changes to stamp duty rates, buyers in our area continue to benefit from relatively modest stamp duty costs compared to more expensive regions. However, it’s worth noting that the stamp duty thresholds were set back in 2014, and with house prices having risen significantly since then, buyers are gradually paying more as a percentage of their purchase price over time.
For most transactions in our area, stamp duty remains manageable and shouldn’t be a barrier to moving forward with your property plans.
Impact on Landlords and the Rental Market
The 2% increase in property income tax rates from April 2027 will affect landlords across all price points. Combined with recent regulatory changes from the Renters’ Rights Act, new energy efficiency requirements, and the increased stamp duty on additional properties (now at 5%), landlords are facing mounting pressures.
At Alan Batt Sales & Lettings, we understand these challenges. Our lettings team is here to help landlords navigate these changes, ensure compliance, and maximise the return on their investment properties. If you’re a landlord feeling the squeeze, now is the time to review your strategy with professional guidance.
Time to Make Your Move
The biggest takeaway from this Budget is that for most people in our area, very little has changed. The stability this brings is good news for the property market.
If you’ve been holding off on buying or selling because of Budget uncertainty, there’s no need to wait any longer. The traditional post-Christmas bounce in property activity will be here before you know it, and getting ahead of that surge could work in your favour.
How We Can Help
Whether you’re:
- A first-time buyer ready to get on the property ladder
- A homeowner looking to move up or downsize
- A landlord needing guidance on managing increased costs
- A seller who’s been waiting for the right moment
Our experienced team at Alan Batt Sales & Lettings is here to support you. We have in-depth knowledge of the local market and can provide personalised advice tailored to your specific circumstances.
The uncertainty is behind us. The market is moving forward. And we’re here to help you make your next move with confidence.
Ready to discuss your property plans? Get in touch with Alan Batt Sales & Lettings today. Call us, visit our office, or contact us through our website to speak with one of our property experts.
The property market waits for no one. With the Budget announcement behind us and the New Year approaching, now is the perfect time to take action on your property goals.