How the Budget Will Shape Your Next Home Move

The government’s latest Budget has been announced and, although it has not delivered the dramatic reform of stamp duty that many people expected, it will shape the property market and the work of conveyancers over the coming years. 

For most buyers and sellers, the main point is that Stamp Duty Land Tax remains as it was after the changes that took effect in April 2025. There are no new thresholds, no temporary tax holidays and no sudden deadlines built into the system. As a result, decisions about moving home are now more likely to be driven by life events and mortgage affordability than by short term tax offers. For conveyancers, that is actually helpful, because fewer artificial deadlines tend to mean fewer last minute emergencies, more predictable pipelines of work and a better chance to manage caseloads sensibly rather than concentrating everything around a single date when tax rates change.

The broader backdrop is still one of stretched affordability. With the earlier temporary uplift in stamp duty thresholds now removed, buyers, and particularly first time buyers, continue to feel the effect of a higher tax burden compared with that earlier period. However, if interest rates ease in line with current expectations, gradually improving mortgage costs may soften some of that pressure. A calmer and more stable mortgage environment usually produces a steadier flow of property transactions rather than the boom and bust pattern that conveyancers have had to handle in recent years. This shift from a rush to complete before a tax deadline towards moving when it genuinely makes sense should make the legal process more predictable for both lawyers and their clients.

At the very top of the market, the picture is more striking. The introduction of what many are calling a mansion tax, in the form of a new high value council tax surcharge on homes worth more than two million pounds, is targeted squarely at higher value properties. Although this charge will not take effect until 2028, its influence will be felt much sooner. Buyers and sellers of expensive homes will begin to think now about how close they are to that threshold, whether a property is likely to be brought into the scope of the new charge when it is re valued, and what that means for long term affordability and resale prospects. Conveyancers who act in this part of the market can expect more detailed enquiries about valuation evidence, more collaboration with surveyors and tax advisers, and more pressure to identify potential future exposure to this annual charge in reports on title. Pricing behaviour may also change, with some owners choosing to list just below important value thresholds or to bring sales forward before the new regime fully settles, which could lead to a concentration of premium market transactions in the years immediately before the change.

Landlords and buy to let investors face a different set of challenges. An additional tax on rental income further reduces net returns in a sector that is already dealing with tighter regulation, higher borrowing costs and changing expectations from tenants. Some landlords will decide to leave the market altogether, especially in areas where yields are already low or borderline, which is likely to generate more instructions for the sale of former rental properties. Others will reshape their portfolios, selling weaker properties, reinvesting in stronger locations or restructuring ownership through companies or other arrangements after taking specialist tax advice. From the point of view of conveyancing, that means a higher volume of investor driven transactions, more linked sales and purchases, and more technically demanding work such as transfers of property into corporate structures. Existing tenancy agreements, compliance with licensing rules and Energy Performance Certificate requirements, and the practical steps needed to deliver either vacant possession or a tenant remaining in occupation will all remain central issues in these cases.

At the same time, the Budget’s emphasis on increasing housing supply keeps new homes and affordable housing firmly on the agenda. The government’s aim to deliver a large number of additional homes during the life of the current Parliament, supported by planning changes and funding, is likely to sustain a strong flow of new build conveyancing work for some years. Conveyancers will continue to see demand for expertise in plot purchases, shared ownership arrangements, complex lease structures and estate management schemes. Matters such as service charges, estate rentcharges, management company responsibilities and the effect of planning conditions will need to be explained clearly to buyers, who are increasingly wary of terms that feel unclear or overly burdensome. For many firms, specialist knowledge in relation to new build property is becoming less of a niche area and more of a core part of day to day practice.

Taken together, these measures are shifting the mood in the property market from a pause while people waited for the Budget to something closer to cautious progress. In the run up to the announcement, uncertainty about property taxation, particularly at the higher end of the market, led many potential movers to delay their decisions. Now that Stamp Duty Land Tax has been left as it is and the new mansion style council tax charge is clearly limited to the very top of the market, there is space for more normal decision making to resume. If interest rates do ease as expected, many analysts anticipate that housing demand will recover gradually rather than in a sudden surge. For conveyancers, that points towards workloads that are sustained but manageable, with fewer extreme peaks driven by tax deadlines but a higher proportion of complex matters involving tax considerations, landlord restructuring or intricate new build and leasehold arrangements.

For clients, the practical message is straightforward. If you are buying or selling a property that is comfortably below the very top of the market, you should plan on the basis that current rates of Stamp Duty Land Tax will remain in place for the foreseeable future and you should not rely on the hope of a sudden tax giveaway. Instead, you should concentrate on what you can control, such as your mortgage options, your budget and realistic pricing. If you are dealing with a high value property, you should build the expected future annual property charge into your long term affordability calculations and ensure that your conveyancer, your surveyor and your tax adviser are all communicating with each other before you commit to a contract. Landlords should review their portfolios in light of the extra tax on rental income and decide whether to retain, restructure or sell properties, but only after obtaining appropriate tax advice.

In conclusion, this government Budget does not transform the rules of property tax overnight, but it does quietly reshape the landscape in which buyers, sellers, landlords and investors must make their decisions. Stamp Duty Land Tax has been left in place, yet new and future charges on higher value homes and on rental income will influence how people buy, hold and sell property in the years ahead. At the same time, the continued push to increase housing supply will keep the focus on new homes and more complex legal structures for ownership and management.

For anyone involved in a property transaction, the message is clear. It is more important than ever to understand not only the legal position of the property itself, but also the tax and financial context that surrounds it. Early, open conversations with your conveyancer, alongside independent financial and tax advice where appropriate, give you the best chance of structuring your move or your investment in a way that suits your long term plans. The Budget may not have delivered dramatic headlines, but it has confirmed that careful planning, clear advice and joined up thinking are now essential parts of successful conveyancing.