The Autumn Budget 2025 will be remembered for the sheer volume of leaks in the days and even the final minutes leading up to it. Now that the Chancellor has finally delivered it, we can look at what actually happened, what didn’t, and what it all means for the property market as we move towards 2026.
1. Council Tax and the Mansion Tax rumours
For weeks, there was speculation about major Council Tax reform and a new mansion tax starting at properties worth over £500,000. Those rumours turned out to be only partly true.
A new Higher Value Council Tax surcharge was confirmed, but it applies only to homes over £2 million, rising from £2,500 to £5,000 a year depending on the value.
This won’t affect the vast majority of homeowners in Thetford.
2. Stamp Duty
Many hoped for changes to make moving more affordable, especially for first time buyers.
There were rumours that Stamp Duty could be reformed or even replaced for higher value homes.
In the end, no changes were made this year.
The existing system stays exactly as it is.
3. Capital Gains Tax
Capital Gains Tax doesn’t apply to your main home, but does apply to second homes and buy-to-lets.
There were rumours that CGT on property could rise sharply or that main residence relief could be reduced.
None of this happened.
Property-related CGT remains unchanged, which will be a relief for landlords and second home owners.
4. Income Tax on earnings
The heavily rumoured rise in Income Tax didn’t happen.
However, the freeze on personal allowances and thresholds, originally running to 2027/28, has been extended until 2030/31.
This means that as wages rise, more of your income is taxed over time.
It won’t stop people moving, but it will be felt by anyone saving for a deposit or planning their next step on the ladder.
5. Income Tax on savings and rental income
There were worries that rental income might become subject to National Insurance.
Instead, the Chancellor increased Income Tax rates on savings and property income by two percent across the basic, higher and additional bands.
This directly affects buy-to-let landlords and anyone with savings income.
For landlords already managing rising costs, it is another pressure point.
So what does all this mean for the 2026 property market?
Experts estimate the Budget brings in around £26 billion in additional taxation.
For most people, that simply means money won’t stretch quite as far as it used to.
But certainty is often more important than generosity in the housing market, and now that the Budget is out, buyers and sellers can plan with more confidence.
Interest rates are expected to fall further in 2026, with another reduction predicted when the Bank of England meets on 18 December. Lower borrowing costs will help buyers and support prices across the market.
The new Council Tax surcharge won’t affect most Thetford buyers, and could even draw more attention to higher value homes that sit just under the thresholds.
What this means for sellers
A well-presented, accurately priced home will always attract interest, regardless of economic conditions.
If you’re considering selling in 2026, now is a good time to get an updated valuation and understand where your home sits in the current market.
What this means for landlords
Between the changes to tax on rental income and the upcoming Renters’ Rights Act, this is a pivotal moment for Thetford landlords.
It’s an ideal time to review your portfolio, check your long-term plans and make sure each property is delivering the results you expect.
If you’d like help with this, our lettings team is always happy to offer guidance.
Doing business the ethical way
We are proud members of the Ethical Agent Network.
This is a national group of independent estate agents who have been independently tested to ensure they meet high standards of honesty, service, professionalism and community care.
We are the only local agency to have passed the EAN assessment, and we take that responsibility seriously.
If you’d like tailored advice on how the Budget affects your move, your rental property or your plans for 2026, contact us today.
Article by Andrew Overman | Partner | Location Location East
