Looking to Move in 2026? What the November Budget Means for You
The November Budget introduces new tax measures that will influence affordability, demand and long-term property decisions. With higher household costs and a new levy on homes over £2 million, buyers and sellers will need to plan their next steps with clearer strategy.
What the November 2025 Budget Means for Buyers and Sellers
The November 2025 Budget has introduced a series of tax changes that will influence how people buy and sell homes over the next few years. The headlines may not feel dramatic, but the effects will be very real — shaping behaviour, confidence and decision-making as we head towards 2026.
A Budget Designed to Raise Revenue
One of the government’s main goals is to raise around £26 billion over the next five years. To get there, income tax thresholds will remain frozen until 2030–31. As wages rise, more people will gradually fall into higher tax bands, reducing disposable income and squeezing affordability.
Another change is the introduction of National Insurance on some salary-sacrifice pension contributions, making this once-efficient savings option a little less attractive for households and higher earners.
A New “Mansion Tax” for £2m+ Homes
From April 2028, a new annual levy will apply to homes valued above £2 million.
It’s expected to raise about £400 million a year.
While only a small slice of the market will pay it, changes at the top end often ripple downward — affecting confidence and how people behave across multiple price brackets.
What This Means for Sellers of High-Value Homes
If you’re selling a property above £2 million, the landscape is shifting.
Buyers who might once have stretched into this bracket may now hesitate when they factor in higher running costs.
This could mean:
- Softer demand
- Longer selling times
- More cautious offers
For anyone planning to sell in 2026, preparing early and pricing realistically will be more important than ever.
What It Means for Buyers in the £2m+ Range
Buyers at the top end may benefit from stronger negotiating power as competition eases.
But long-term affordability matters more now, and the purchase price is only part of the picture.
Future buyers should consider:
- Mortgage costs
- Energy efficiency
- The upcoming annual levy
- Long-term running costs
Impact on the Wider Market
Most buyers and homeowners won’t be directly affected by the levy.
However, the overall Budget will still shape the broader market.
When taxation tightens household budgets, confidence often dips. This particularly affects:
- First-time buyers
- Those moving from mid-market to upper-mid-market homes
The result? A market that’s more cautious and value-driven, with fewer speculative moves.
Advice for Mid-Market Sellers
In this environment, pricing is key.
Homes priced accurately from the start tend to attract strong early interest, while overpriced listings risk going stale.
Well-presented homes with realistic price tags will be the ones that stand out.
Advice for Buyers in 2026
A calmer, more measured market can work in buyers' favour.
With less pressure to rush, buyers have more time to:
- Negotiate
- Plan
- Compare options
- Wait for the right property
Those looking to move in the first half of 2026 may find opportunities that were harder to secure when competition was stronger.
Market Outlook
Transaction levels are expected to remain steady but subdued. Some investors may pause to reassess yields, and upsizers or downsizers might wait for more clarity. But importantly, there are no signs of instability or forced selling.
This is a market characterised by caution, not concern.
Thinking About Moving in 2026?
If you're planning a move, the best first step is understanding how the new tax environment affects you specifically.
A conversation with our team can help you understand:
- Your home's position in the current market
- Demand within your price bracket
- The best timing for your move over the next 12–18 months
Please get in touch via the contact form if you’d like tailored guidance.
For Buyers: Stay Ahead With Heads Up Alerts
If you want early access to new or coming-soon listings, registering for Heads Up Alerts means you'll see properties before they reach the major portals. In a slower, more selective market, early access can make a real difference.
The November Budget has reshaped the financial backdrop for UK households. The market remains stable, but thoughtful planning will matter more in 2026. Understanding how these changes affect your move will help you navigate the year with confidence and clarity.
