Autumn Budget 2025: What It Means for Surrey Homeowners, Sellers & Landlords

Mon 01 Dec 2025

Carolyn Foster, Sales Negotiator

This year’s Autumn Budget has introduced two headline-grabbing property changes that could impact a number of clients across our local Surrey communities - particularly in areas like East Horsley, Cobham, Ripley, Bookham and beyond. With a new ‘Mansion Tax’ set to begin in 2028 and a rise in property income tax for landlords starting in 2027, now is a good time to pause and take stock of how these new measures might influence your future plans - whether you’re living in your forever home, preparing to sell, or managing a rental property.

Here’s our simple guide to what you need to know.

The Mansion Tax:

Coming in 2028 From April 2028, a new annual surcharge will apply to higher-value homes: £2,500 per year for properties worth £2 million or more £7,500 per year for properties worth £5 million or more. This new tax will be collected alongside council tax and, according to the Chancellor, is expected to apply to “fewer than 1% of UK properties.” While the government says this will impact fewer than 1% of homes nationally, many of the roads we cover in villages like East Horsley, Cobham, or West Clandon fall squarely within this bracket. This isn’t a tax on the ultra-rich - it’s a tax on much of the upper-middle market in our part of Surrey.

Even though these changes won’t kick in until 2028, they could start influencing buyer decisions now. Homes valued just over the £2M mark may see pressure on pricing, and sellers should be aware of how ‘cliff edges’ in tax rules can distort buyer appetite. We also know that many of our clients live in long-held family homes that have risen in value over time, rather than sprawling mansions. But rising local house prices mean even modest homes in our area are edging past the £2 million mark. These changes could create a tipping point for some owners, especially those weighing up whether to move, pass property on, or re-structure assets in the coming years.

Landlord Tax Changes:

From April 2027, landlords who own property in their personal name will face a 2% increase on both the basic and higher rates of property income tax. This comes on top of existing pressures:

Section 24 mortgage interest relief limitations
Increasing regulation through the Renters’ Rights Act
Stricter EPC and compliance requirements

It’s worth noting that landlords who own property through limited companies are not impacted by this change, but transferring ownership structures comes with its own considerations (e.g. Capital Gains Tax, Stamp Duty Land Tax, and admin costs).
For small-scale or accidental landlords, particularly common in the local Surrey market, this may be a moment to revisit your long-term strategy.

What This All Means

Whether you're a homeowner, seller or landlord, these announcements are important for future planning. Here are the key takeaways:

High-value homes (£2m+) will face new annual charges from 2028
Landlords will see their rental income tax bills rise in 2027 (if not incorporated)
Mortgage rates and borrowing costs remain high - especially for new investors
More financial planning and admin may be needed to future-proof your portfolio

Let’s Talk Strategy

At Wills & Smerdon, we work closely with homeowners and landlords across the Surrey Hills and beyond. Whether you’re:

Preparing to sell your property
Considering an early move ahead of the new charges
Evaluating the future of your buy-to-let Just looking for clarity in the current climate

…our local team is here to support you. We can connect you with trusted tax and mortgage specialists, and guide you through all your property decisions - no jargon, just straightforward advice.

�� Call us on 01483 284141 �� Offices in East Horsley & Ripley �� willsandsmerdon.co.uk