The Autumn Budget 2025 has now been delivered. While many people hoped for bold reform to make buying a home easier, this Budget takes a more restrained approach. Even so, it introduces several changes that will affect buyers over the next few years. This is a clear and practical guide to what has changed, what has not, and what you can do next.
Stamp duty: still frozen, still frustrating
The Chancellor has left Stamp Duty thresholds exactly where they are. As a result, more buyers will continue to drift into higher tax bands as prices rise. With no new reliefs for first-time buyers or those moving home, the tax burden remains firmly in place.
What you can do now is straightforward. Factor the full cost of Stamp Duty into your financial plans at the outset. If you are comparing homes across different price brackets, run the numbers early so you are not caught out. With no indication of future reform, it is sensible to plan on the basis that the current thresholds will remain in place for some time.
High-value homes face a new annual levy
From 2028, homes worth more than £2 million will be subject to a new annual levy. It has already been described as a mansion tax, and while only a small proportion of properties will be affected, the ripple effects will be wider.
Prices at the prime real estate end may soften as buyers weigh up this new cost, however it has also brought certainty to the market following a period of anticipation of what the government would bring in. If you are considering a high-value property, take the levy into account early and think about how it will influence long-term affordability.
ISA changes: saving for a deposit may take longer
The annual cash ISA allowance will fall to £12,000 from 2027. For many buyers, particularly those saving a first deposit, this limits the amount that can be put away tax free each year.
It is important to explore alternative savings options sooner rather than later. Consider a combination of savings products rather than relying on a single route. A more balanced approach means you are less exposed to changes announced in future Budgets.
House prices: growth expected to slow, not stop
Forecasters expect house price growth to continue but at a slower pace. A more settled market brings some advantages. First-time buyers may find less competition when making offers, and movers might have a clearer idea of how long their home is likely to take to sell.
A slower rise does not mean prices will fall. Instead, it points to a period of steadier conditions. This helps those who need time to save, research or prepare their next move.
Energy efficiency: more support and lower running costs
The Budget includes further funding for home energy-efficiency improvements. Over time, this could lead to more homes being insulated, fitted with better heating systems and upgraded for long-term efficiency.
For buyers, this matters. An energy-efficient home costs less to run, which supports affordability long after the purchase price has been paid. It also means future buyers will increasingly expect higher standards, so choosing a well-insulated property today may help preserve value in the years ahead.
What this means for different types of buyers
First-time buyers
A slower market gives you more breathing space. Review your savings plan now so you are ready to adjust when ISA rules change.
Home-movers
Stamp Duty thresholds will continue to create fiscal drag. Make sure your budget takes a realistic view of taxes and moving costs.
Prime real estate buyers
The new annual levy is a long-term financial commitment. Build it into your affordability checks alongside mortgage costs.
Investors
Returns may tighten slightly, but more stability and lower competition in some areas could work in your favour.
Giving you the full picture
The Autumn Budget 2025 is not a transformational moment for the housing market, but it does shift the landscape in important ways. Buyers should expect a more predictable period of house price growth, continued pressure from frozen Stamp Duty thresholds and a gradual shift in behaviour at the top of the market. At the same time, support for energy efficiency suggests a long-term move towards lower running costs and more sustainable homes.
If you want to understand how these changes affect your plans, the best next step is to speak to an expert at Tees early. Clear advice at the outset will help you move confidently in a market that remains steady but continues to evolve.
