The 2025 Autumn Budget's Impact on the Property Sector in the South West
November 2025
The Autumn Budget is a pivotal moment for economic planning and policy direction, especially in relation to the property market.
Before the formal announcement of the Budget on the 26th November there was a great deal of speculation around the Government's financial strategies and priorities. Stamp duty, council tax reforms and capital gains tax on primary residences have all been previously mooted by the Chancellor as areas subject to potential changes.
Now that the Budget has been officially broadcast, it has come to light that many of these rumoured proposals have not been brought forward. It seems that the Government’s ongoing efforts to balance their budget, while promoting economic stability are reflected again in this year’s Budget.
Key Takeaways for the Residential Sales and Lettings Property Market
High Value Council Tax Surcharge
This will be introduced in 2028 for properties over £2 million and will be paid alongside council tax. The surcharge for properties worth over £2 million will equate to an annual payment of £2,500 and for properties worth more than £5 million the annual charge will be £7,500.
It is anticipated that this action will necessitate the re-assessment and valuation of homes in the highest council tax bands—F, G, and H—for the first time since 1991.
Landlord Property Income Tax Rates
Despite rumours before the Budget that National Insurance payments would be extended to rental income, this change was not announced. However, landlords will instead pay increased rates of income tax on earnings from their properties from April 2027.
The basic, higher and additional rates will increase to 22%, 42% and 47% respectively for those who own properties in their own names as sole traders.
Key Takeaways for Business and Agricultural Property
Inheritance Tax Relief
Following last year's Budget, which declared significant changes to Inheritance Tax (IHT), one further adjustment was announced today. The combined £1 million 100% Business Property Relief (BPR) and Agricultural Property Relief (APR) will now be transferable between spouses and civil partners.
This could be a welcome adjustment for many and should prove particularly beneficial to older farmers who were considering complicated restructures to the ownership of their farm or changes to their will. However, it will not eliminate the need for business and farm owners to carefully evaluate their succession planning as they move forward.
Key Takeaways for the Commercial Property Sector
Business Rates
Business rates will be permanently reduced for 750,000 retail, hospitality and leisure businesses properties with a ratable value less than £500,000 from 1st April 2026.
This is planned to be funded by increased rates on properties valued at over £500,000 and usually occupied by "warehouse giants". Additionally, the Chancellor is advising that there will be £4.3 billion available to support those commercial properties that are facing a significant increase in their bills.
Joseph Hughes MRICS, Partner based from our Yeovil and Taunton offices has said: “Yesterday’s budget for the commercial market will hopefully improve the viability for businesses within the retail, hospitality and leisure sectors.
This year the commercial market has performed well with the majority of transactions being freehold sales rather than commercial lettings. Hopefully, the reduced rates will bolster the occupier market for 2026 in these sectors.”
Other Housing and Development Incentives
In a bid to help support their target of supplying 1.5 million new homes across the country during this Parliament, the Government has announced their plan for a significant change in policy regarding development around train and tram stations. Under these new guidelines, housebuilding close to "well-connected" train stations will be given a default “yes”.
The government has also committed to providing significant funding for affordable housing projects, aiming to increase the overall housing supply. Support is also being directed to local councils to streamline planning applications.
In addition to housing supply, the Autumn Budget includes significant investments in infrastructure, focusing on enhancing transport links and public services across the region. Improved transport connectivity will likely make previously hard-to-reach areas more accessible and attractive for homebuyers, boosting property values in those locales. The result could be a shift in regional demand and an increase in development opportunities.
South West Property Market Trends
Whilst national trends often set the tone for housing markets, the South West has its unique climate. Factors such as scenic appeal and desirable communities may drive demand differently compared to larger urban centres. Consequently, the effects of the Autumn Budget may be experienced in different ways across the region, with some areas experiencing faster growth than others.
Simon Havens MNAEA, Partner, Head of Residential Sales and Chairman based from our Yeovil office concluded: “Property professionals had been eagerly awaiting stamp duty reforms to be announced in this Autumn’s Budget. However, it does seem that the current regressive taxation relating to property transactions have been ignored by the Government.
Despite this, would-be movers who have also been waiting to see what kind of reforms were going to take place, can at least move forwards with their plans in greater confidence whilst factoring in the current stamp duty arrangements.”
At GTH, we have a broad range of services and depth of knowledge throughout our specialist teams. We can assist with any kind of property query or advice about the budget changes and how this might affect your property decisions.
So, whatever your circumstances, find a list of all GTH offices and services across the West Country. If you are considering selling your home, speak to our local property experts who would be delighted to assist or book a free valuation today.
Before the formal announcement of the Budget on the 26th November there was a great deal of speculation around the Government's financial strategies and priorities. Stamp duty, council tax reforms and capital gains tax on primary residences have all been previously mooted by the Chancellor as areas subject to potential changes.
Now that the Budget has been officially broadcast, it has come to light that many of these rumoured proposals have not been brought forward. It seems that the Government’s ongoing efforts to balance their budget, while promoting economic stability are reflected again in this year’s Budget.
Key Takeaways for the Residential Sales and Lettings Property Market
High Value Council Tax Surcharge
This will be introduced in 2028 for properties over £2 million and will be paid alongside council tax. The surcharge for properties worth over £2 million will equate to an annual payment of £2,500 and for properties worth more than £5 million the annual charge will be £7,500.
It is anticipated that this action will necessitate the re-assessment and valuation of homes in the highest council tax bands—F, G, and H—for the first time since 1991.
Landlord Property Income Tax Rates
Despite rumours before the Budget that National Insurance payments would be extended to rental income, this change was not announced. However, landlords will instead pay increased rates of income tax on earnings from their properties from April 2027.
The basic, higher and additional rates will increase to 22%, 42% and 47% respectively for those who own properties in their own names as sole traders.
Key Takeaways for Business and Agricultural Property
Inheritance Tax Relief
Following last year's Budget, which declared significant changes to Inheritance Tax (IHT), one further adjustment was announced today. The combined £1 million 100% Business Property Relief (BPR) and Agricultural Property Relief (APR) will now be transferable between spouses and civil partners.
This could be a welcome adjustment for many and should prove particularly beneficial to older farmers who were considering complicated restructures to the ownership of their farm or changes to their will. However, it will not eliminate the need for business and farm owners to carefully evaluate their succession planning as they move forward.
Key Takeaways for the Commercial Property Sector
Business Rates
Business rates will be permanently reduced for 750,000 retail, hospitality and leisure businesses properties with a ratable value less than £500,000 from 1st April 2026.
This is planned to be funded by increased rates on properties valued at over £500,000 and usually occupied by "warehouse giants". Additionally, the Chancellor is advising that there will be £4.3 billion available to support those commercial properties that are facing a significant increase in their bills.
Joseph Hughes MRICS, Partner based from our Yeovil and Taunton offices has said: “Yesterday’s budget for the commercial market will hopefully improve the viability for businesses within the retail, hospitality and leisure sectors.
This year the commercial market has performed well with the majority of transactions being freehold sales rather than commercial lettings. Hopefully, the reduced rates will bolster the occupier market for 2026 in these sectors.”
Other Housing and Development Incentives
In a bid to help support their target of supplying 1.5 million new homes across the country during this Parliament, the Government has announced their plan for a significant change in policy regarding development around train and tram stations. Under these new guidelines, housebuilding close to "well-connected" train stations will be given a default “yes”.
The government has also committed to providing significant funding for affordable housing projects, aiming to increase the overall housing supply. Support is also being directed to local councils to streamline planning applications.
In addition to housing supply, the Autumn Budget includes significant investments in infrastructure, focusing on enhancing transport links and public services across the region. Improved transport connectivity will likely make previously hard-to-reach areas more accessible and attractive for homebuyers, boosting property values in those locales. The result could be a shift in regional demand and an increase in development opportunities.
South West Property Market Trends
Whilst national trends often set the tone for housing markets, the South West has its unique climate. Factors such as scenic appeal and desirable communities may drive demand differently compared to larger urban centres. Consequently, the effects of the Autumn Budget may be experienced in different ways across the region, with some areas experiencing faster growth than others.
Simon Havens MNAEA, Partner, Head of Residential Sales and Chairman based from our Yeovil office concluded: “Property professionals had been eagerly awaiting stamp duty reforms to be announced in this Autumn’s Budget. However, it does seem that the current regressive taxation relating to property transactions have been ignored by the Government.
Despite this, would-be movers who have also been waiting to see what kind of reforms were going to take place, can at least move forwards with their plans in greater confidence whilst factoring in the current stamp duty arrangements.”
At GTH, we have a broad range of services and depth of knowledge throughout our specialist teams. We can assist with any kind of property query or advice about the budget changes and how this might affect your property decisions.
So, whatever your circumstances, find a list of all GTH offices and services across the West Country. If you are considering selling your home, speak to our local property experts who would be delighted to assist or book a free valuation today.