Looking to Move in 2026? What the Autumn Budget Means for You
The November Budget has introduced several tax changes that are set to influence affordability, buyer behaviour and long-term property planning across the UK. With rising household pressures and a new levy on homes over £2 million, both buyers and sellers will need to think more strategically about their next steps.
What the Budget Means for the Property Market
The November 2025 Budget brought forward a range of tax adjustments that will directly and indirectly affect how people buy and sell homes in the coming years. Although the tone of the Budget wasn’t dramatic, the implications are significant enough to shape market behaviour heading into 2026.
A key headline is the government’s ambition to raise around £26 billion over the next five years. A major part of that plan is the continued freeze on income tax thresholds until 2030–31. As wages rise, more people will slide into higher tax brackets, reducing disposable income and making homebuying less affordable for many households.
Another notable change is the introduction of National Insurance on certain levels of salary-sacrifice pension contributions. This reduces the tax-efficient benefit of a method many families and higher-earning individuals have relied on to save more effectively.
The “Mansion Tax”: A New Levy on £2m+ Homes
The Budget also confirmed the introduction of a new annual levy on properties valued above £2 million, beginning in April 2028. Often referred to as a “mansion tax”, it is expected to generate roughly £400 million per year.
While this targets a small portion of the housing market, tax changes at the upper end often influence behaviour more broadly, affecting confidence across a range of price brackets.
Impact on Sellers of Premium Homes
For homeowners planning to sell properties above £2 million, the landscape is changing. Buyers who might previously have stretched into this band may hesitate once future annual costs are factored in. As a result:
- Demand at the top end may soften
- Selling times could lengthen
- Offers may become more cautious
Sellers thinking of moving in 2026 may benefit from preparing early, pricing realistically, and bringing their home to the market before buyer sentiment becomes more cautious over the next two years.
Impact on Buyers in the £2m+ Market
Buyers in this bracket will need to take a more holistic view of affordability. The purchase price alone is no longer the only consideration; instead, long-term running costs, mortgage payments, energy efficiency and the upcoming annual levy must all be factored into decision-making.
At the same time, softening demand may offer motivated buyers more negotiating power.
What This Means for the Wider UK Market
While most households won’t be directly affected by the £2 million levy, the broader tax environment will still influence market behaviour.
When affordability tightens due to taxation rather than rising consumer costs, buyer confidence tends to dip. This typically results in:
- More cautious first-time buyers
- Fewer discretionary or speculative moves
- Slower price growth
- A stronger focus on value and long-term stability
For Sellers in the Mid-Market
Pricing is now more important than ever. Realistic, well-researched pricing tends to attract stronger early interest, while homes priced too optimistically may stay on the market longer as buyers become increasingly selective.
Well-presented, accurately valued homes will hold the greatest advantage.
For Buyers Below £2 Million
A more measured market can work in your favour. As demand cools in certain sectors, buyers are likely to see:
- More room for negotiation
- Less pressure to make quick decisions
- Greater choice as stock gradually increases
- A more stable environment heading into early 2026
Those planning to move in the first half of 2026 may find opportunities that were less accessible during recent competitive years.
What to Expect in 2026
Transaction volumes are expected to remain steady but subdued. Investors may pause to reassess yields against increasing tax burdens, while upsizers and downsizers may wait for greater economic clarity.
However, the foundations of the market remain stable. There are currently no signs of forced selling or structural issues — the atmosphere is one of caution, not crisis.
Thinking of Moving in 2026? Here’s Your Next Step
If you’re considering a move next year, the most sensible first step is understanding your position within this new tax landscape.
A personal conversation can help clarify:
- How the Budget affects your current home's value
- What demand looks like in your price bracket
- The best timing for your move over the next 12–18 months
If this sounds like you, please get in touch via our contact form.
For Buyers:
To stay ahead in a slower, more selective market, registering for Heads Up Alerts ensures you see new or soon-to-launch properties before they appear on the major public portals. Early access can provide a strong advantage.
Final Thoughts
The November Budget has reshaped the financial backdrop for households across the UK. While the general property market remains stable, strategic planning plays a far more important role than in previous years.
Understanding how these changes relate to your situation is the key to navigating 2026 with confidence and clarity so give us a call on 0121 681 6327.