The 2025 Autumn Budget delivered a mix of stability and new costs for homeowners and landlords. Here’s a clear breakdown of what matters most for buyers, sellers and investors in Sidcup, Dartford, Abbey Wood and the surrounding areas.
No Change to Stamp Duty or LHA
Despite speculation, the government made no adjustments to Stamp Duty thresholds or Local Housing Allowance rates. This keeps buying costs stable for now, but frozen LHA rates continue to place pressure on renters relying on support.
Property Income Tax to Rise
From April 2027, property income tax rates will increase:
• Basic rate rising to 22%
• Higher rate rising to 42%
• Additional rate rising to 47%
Landlords will need to factor these higher rates into future planning and rental yield assessments.
High Value Council Tax Surcharge (‘Mansion Tax’)
From April 2028, a new annual surcharge will apply to homes valued above £2 million:
• £2,500 per year for properties between £2m and £2.5m
• Up to £7,500 per year for homes above £5m
This will mainly impact higher-value locations in London and the South East and may encourage some owners to reassess their long-term plans.
Short-Term Lets: Visitor Levies
Regional mayors will gain powers to introduce an overnight visitor levy on short-term and holiday lets. A consultation will determine how this will work, but the change introduces potential new costs for short-let and holiday-let investors.
What This Means for Our Local Market
• Buyers benefit from unchanged Stamp Duty thresholds.
• Renters face continued affordability pressure with LHA rates frozen.
• Landlords should prepare for reduced net income from 2027 due to higher taxation.
• Owners of higher-value homes may see increased annual running costs from 2028.
• Short-let investors should monitor upcoming consultations on visitor levies.
If you’d like advice on how these changes could impact your next move or investment, the team at James Gorey Estate Agents is here to help.