Budget Update: What It Means for the South West Property Market

- Wed 26 Nov 2025

The Chancellor’s latest Budget brought fewer property tax changes than expected, which is good news for much of the market. Here are the key highlights impacting homeowners, buyers and landlords.

No New Tax on £500k+ Homes

The widely rumoured annual tax on homes over £500,000 has been scrapped. This removes months of uncertainty and should give the market a much-needed boost, especially in higher-value areas.

Stamp duty stays exactly as it is, meaning most buyers, particularly first-timers continue to pay only modest amounts.

New ‘Mansion Tax’ for £2m+ Properties

From 2028, homes worth over £2 million will face a new annual council tax surcharge:

• £2m+ homes: approx. £2,500 extra per year

• £5m+ homes: approx. £7,500 extra per year

Only around 0.5% of UK homes are affected, with the vast majority in London and the South East. The impact on the South West region will be minimal.

Higher Taxes for Landlords

Landlords will see income tax on property earnings rise by 2% across all bands from April 2027.

Overall Market Outlook

“The feared major tax shake-ups didn’t materialise. The absence of a £500,000+ property tax and a stable stamp duty system provide welcome certainty and should help keep the market moving. The South West market has remained very strong throughout November, and following today’s budget we expect activity to stay above normal levels through December. If you’d like to understand how these changes affect your plans or track your home’s value, the Bradleys team is here to help.”
Kevin James, Director, Bradleys Estate Agents.

Bradleys Estate Agents are the largest independent Estate Agent in the South West with over 30 offices covering Somerset, Devon and Cornwall. Providing an award-winning service for sales, lettings, auctions, new homes, mortgages and conveyancing, Bradleys are the first choice for property across the South West.

Budget Update: What It Means for the South West Property Market

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