✅ What The Budget Means for Reading’s Homeowners, Buyers and Sellers
After all the hype, leaks and speculation, the Autumn Budget has finally arrived, we try to unravel how this will impact local homeowners, buyers and sellers within our local Reading area.
The housing market has seen much speculation in the past few months, including changes to Stamp Duty Land Tax (SDLT) and the prospect of a Mansion Tax, as well as potential capital gains tax charges on high-value home sales.
Stamp duty
Thankfully, there is no confirmed change to Stamp Duty Land Tax (SDLT): although there has been speculation about scrapping or replacing it, the Budget did not commit to abolishing or rewriting SDLT at this time.
The only exception to this is for those buying a second homes, where Stamp Duty has increased to 5%.
This is great news for local buyers, who will breathe a sigh of relief, and it’s likely that we’ll see those who put a home move on hold before the budget get back to house hunting.
Mansion tax
The government is introducing a new annual surcharge on high-value homes: properties in England valued at £2 million or more will face an extra levy.
That surcharge will begin in April 2028, based on property valuations carried out in 2026.
The surcharge is tiered: the lowest band (homes £2.0 m – £2.5 m) will pay a lower charge; the highest-value homes (e.g. £5 m+) will pay a higher annual surcharge.
This measure applies on top of existing local taxes (i.e. it does not replace council tax or other property-related taxes).
The mansion tax will not affect many homeowners in the Reading area, as there are very few homes within our area with a value of over £2M.
There is no precise, publicly available, official count for the exact number of homes in the Reading area valued over £2M. Industry analysis suggests that homes valued over £2 million across the country as a whole is a tiny fraction of the total housing stock, only around 0.5% of all homes in England are estimated to be worth £2 million or more, and that includes central London.
Landlords
Landlords face more taxes following increased recent increases to Stamp Duty, and the end of tax relief on mortgage interest payments for buy-to-let mortgages.
The Chancellor has said she wanted the ‘wealthiest to contribute the most’ and that ‘those with the broadest shoulders should pay their fair share’. She said a landlord earning £25,000 a year from property paid £1,200 less in tax than a comparable tenant on the same income.
She confirmed the imbalance was down to the different National Insurance rates paid by landlords and tenants, but rather than fix that problem, she has raised the basic rate of income tax for landlords by 2%.
From April 2027, the property basic rate will be 22%, the property higher rate will be 42% and the property additional rate will be 47%.
🏡 What this means for homebuyers, sellers and owners
- If you own a home worth £2 million or more, you should plan for an additional annual cost starting in 2028 — this will increase the ongoing cost of ownership.
- For most homeowners — particularly typical buyers in sub-£2 million homes — nothing changes immediately: SDLT and usual taxes continue as before.
- The change gives greater clarity (after a period of speculation): the surcharge applies only to high-value homes, so most households will not be affected.
- For investors or people considering “second homes” or expensive properties – this surcharge adds a long-term operating cost that should feature in decision-making.
📍 London & South-East: likely impact
- In regions like London or the South-East, where property values are higher on average, the new surcharge could impact a meaningful minority of high-end owners (though many homes may still be below £2 m).
- For the majority of buyers in more typical price-ranges (e.g. first-time buyers, family homes), the Budget does not introduce immediate new charges – which offers some stability.
- For property investors and second-home buyers, the surcharge may increase the long-term cost of holding high-value properties, making investment yield calculations more conservative.
✔️ What remains stable/unchanged (for now)
- No abolition or overhaul of SDLT has been confirmed — buying a home continues to carry the same tax regime under Budget 2025.
- The surcharge only affects high-value homes (≥ £2 m), so most owner-occupiers will not see any change to their property tax bills.
- The new charge is scheduled to come in 2028, giving homeowners a reasonable window to plan.
Ready to Move?
To see the very latest homes coming to the market, click ‘New to market homes‘,this lists all of the very latest homes as they come to the market.
Or see our ‘Recently Sold Properties’.
If you are thinking of buying or selling a home in Tilehurst or the surrounding areas of Reading, please feel free to call me for an informal chat, I’ll be pleased to help you if I can.
You can also book a Face to Face Valuation, or use our Instant Online Valuation tool.
Thank you for reading
Charlie Higgs – Village Properties Tilehurst & Twyford
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