Property in a changing Britain: the issues shaping the debate ahead of the Autumn Budget

Property owners and prospective buyers are facing a period of uncertainty. A subdued market, rising ownership costs and speculation ahead of the Autumn Budget are all influencing decisions about buying, selling, borrowing and estate planning.

The property market remains subdued, with prices having fallen in some areas of the country and homes taking longer to sell.¹

This is affecting a wide range of decisions. Some buyers are considering whether to purchase a main residence, a property for their children or an investment property, while existing owners are reviewing their portfolios and questioning whether to hold, sell or change their approach.

The Autumn Budget is adding to this uncertainty, and we are seeing some buyers and sellers delaying decisions until they have greater clarity about the Chancellor’s announcements. This wait-and-see approach could continue to affect activity in the weeks ahead.

Interest rates remain another important consideration. People are thinking not only about the current cost of borrowing, but also about where rates may go over the next two or three years. This is increasing interest in borrowing arrangements that offer greater flexibility, including options without early repayment charges.

For families helping children or grandchildren with property purchases, borrowing against investments or other assets may also be worth considering as an alternative to selling investments or using a main residence as security, though it comes with its own set of risks and should only be considered in conjunction with professional advice.

The tax and wider costs associated with property ownership are becoming increasingly important.

For buyers, this may include the stamp duty surcharge that applies when purchasing an additional property. In certain circumstances, the surcharge may be reclaimed if a previous main residence is sold within the relevant timeframe. However, the rules are complex and depend on individual circumstances.

The cost of owning a second home or holiday property is also changing. Some local authorities have introduced higher council tax charges for second homes that are not let, with certain areas charging up to double the standard rate.

Landlords are also reviewing whether property remains suitable for their circumstances. Tax, regulation, borrowing costs and changing market conditions can all affect the decision to retain or sell a property. The Renters’ Rights Act may further influence the timing and flexibility of those decisions.

But it is important to look beyond headline tax rates. Cash flow, liquidity, borrowing costs and the timing of any tax liability can all affect whether a property decision is financially viable.

As the Budget gets closer, we are likely to see a heightened level of speculation in the media around possible tax changes. Some already being discussed include a so-called ‘mansion tax’, a broader wealth tax, changes affecting inheritance tax (IHT), the removal of the capital gains tax (CGT) uplift on death and a potential exit tax.

However, nothing should be treated as confirmed before the Chancellor’s statement. In truth, making hasty decisions based on uncertain information could have a far more negative impact on your future financial plan than any actual changes, which can be planned for once the detail is confirmed.

A broad wealth tax, for example, would raise significant practical questions about how different assets would be valued, including businesses, shares, homes and other property. Similarly, replacing existing property taxes with a single property tax would involve considerable administrative and political challenges.

Previous Budget periods have shown how quickly speculation can influence behaviour. Some people may rush to complete transactions in anticipation of possible changes, potentially resulting in tax charges or other irreversible decisions based on assumptions that do not become reality.

The safest approach is to distinguish between what is already known, what has been formally announced and what remains speculation.

Rather than trying to predict the exact content of the Budget, property owners may benefit from reviewing their current position and considering how different outcomes could affect them.

This could include assessing:

• Property ownership structures

• Borrowing arrangements

• Potential tax liabilities

• Estate planning objectives

• The role of property within a wider investment portfolio

• The income and liquidity required from existing assets

IHT and gifting also require careful consideration. Transferring a home to children does not automatically remove it from an estate if the original owner continues to benefit from the property. It may also create risks if the recipient later divorces, becomes bankrupt or faces other financial difficulties.

Selling and gifting can have very different tax and financial consequences. The right approach will depend on the type of asset, the owner’s income requirements, family circumstances and long-term objectives.

The key message for property owners is to avoid making rushed decisions based solely on speculation. The Budget may create new challenges, but it may also create planning opportunities. A clear understanding of the current position, combined with the flexibility to adapt when the details are known, is likely to be more valuable than trying to anticipate every possible announcement.

If you’d like to discuss your own financial situation, speak to your usual Evelyn Partners contact or book an appointment.

¹ Rightmove House Price Index September 2026, 21 September 2026