Autumn Budget 2025 (Property Edition)

As we predicted a lot was said. Interestingly very little about Stamp Duty (still untouched), nothing to help renters with frozen LHA rates, but one very big headline… The ‘mansion tax’ is officially happening for homes over £2 million. Cambridge, take note.

Private Landlords & Short Lets: More Squeeze, Less Juice. Landlords, the Chancellor has found another lemon to squeeze. From April 2027, property income tax goes up 2% across all bands: 22% (basic rate), 42% (higher rate) and 47% (additional rate).

Regional mayors can soon introduce a tourist levy on overnight stays (like the £1.30 in Wales or Scotland’s 5%). Cambridge May Ball season just got interesting!

After a decade of tweaks — mortgage interest relief cut, extra stamp duty, Renters’ Rights Act changes, and squeezed capital gains allowances — the message is clear: Private landlords are being nudged out of the market. Result? Less rental supply long term → higher rents for tenants, because maths.

Home Buying & Selling: The £2m Question

From April 2028 there’s a High Value Council Tax Surcharge for properties over £2 million, costing between £2,500–£7,500 per year. Some areas of Cambridge will feel this more than others. (We won’t name names, but the clue is in the postcode)

On the brighter side. UK average house prices are expected to rise from £260k (2024) to £305k (2030). Growth forecast around 2.5% a year from 2026, in line with earnings. Translation: steady growth, not boom or bust, which makes a nice change.

Propertymark are pushing reforms that we strongly support: Faster, fairer Stamp Duty thresholds, Less friction in transactions (yes please), More support for downsizing (free up all those family homes!). We’ll drink to that!

Business Costs: A Bit Tight Around the Middle (a little like me)

For companies like ours (and most local trades we rely on): Writing Down Allowance drops from 18% to 14% in April 2026 = less relief on cars, secondhand kit and other spending. Employer National Insurance threshold freeze extends to 2030-31 = your team costs more each year, even if you don’t grow. Salary-sacrificed pensions above £2,000/year lose NIC exemption from April 2029.

National Minimum Wage hikes from April 2026: 21+ → £12.71/hr, 18–20 → £10.85/hr and Under-18s/Apprentices → £8/hr

And another little ray of sunshine — Retail, hospitality and leisure properties are to get relief on business rates after 2026. Useful for high streets, cafés, and those pubs we love selling houses near. Let's keep building communities please.

What This Means for Cambridge Property?

Landlords may exit → rents likely rise, Higher value homes will need sharper pricing and advice, Transaction reform can’t come soon enough and Businesses, including agents, will feel rising costs.

At Cooke Curtis & Co we’ll continue doing what we’ve always done: Real advice, tailored strategy, and no-caffuffle deals. Budget or no budget, Cambridge still needs great estate agents.