The Autumn Budget 2025: What it Means for Conveyancing

The Autumn Budget 2025 introduces several measures that have implications for residential conveyancing and, to a lesser extent, commercial and property-investment work. Below is a breakdown of how the Budget affects conveyancing law and practice.

Residential Conveyancing: What Has Changed

New Ongoing Costs for High-Value Homes

The Budget introduces a new annual high-value council tax surcharge for residential properties in England valued above £2 million. Owners who are not occupiers will be required to pay this surcharge in addition to standard council tax. The proposed bands begin at £2,500 per year for properties valued between £2 million and £2.5 million, rising to £7,500 per year for properties above £5 million.

Higher Tax on Rental and Property Income

From April 2027, income tax rates on property income will rise by two percentage points across all rates. This will affect landlords and anyone earning rental income. This may influence the attractiveness of buy-to-let or second-home purchases and could indirectly affect residential conveyancing volumes.

No Changes to Purchase-Time Taxes for Most Buyers

The Budget does not alter Stamp Duty Land Tax (SDLT) thresholds or rates for standard residential purchases. For buyers acquiring a main home, the conveyancing process continues under the current SDLT structure.

Commercial, Mixed-Use and Property-Investment Conveyancing

There are no changes to SDLT for non-residential or mixed-use properties. Commercial property transactions can therefore continue under the existing tax regime at the point of purchase. However, the forthcoming increase in property-income tax from 2027 will also affect landlords and investors who receive rental income from commercial premises.

Practical Implications for Conveyancers, Buyers and Investors

• For standard residential buyers, the process remains largely unchanged. However, long-term ownership costs for high-value properties will rise.
• For landlords and investors, higher property-income tax will reduce after-tax yields.
• For high-value residential purchasers, the new surcharge may deter some buyers.
• For commercial and mixed-use property, purchase-time costs remain stable, although long-term tax considerations may influence investment decisions.