The November 2025 Budget has introduced some tax changes that will influence how people buy and sell homes in the coming years. While the tone isn’t dramatic, these updates are important enough to shift habits, affect demand, and shape how both buyers and sellers approach the market as we head into 2026.

One of the biggest points for most households is the government’s plan to raise about £26 billion over the next five years. A big part of this is keeping income tax thresholds frozen until 2030–31. In simple terms, as wages go up, more people will move into higher tax brackets, which means less disposable income and tighter budgets for many families. There’s also a new rule that adds National Insurance to certain salary-sacrifice pension contributions, reducing one of the more tax-efficient ways people have been saving.

On top of that, the Budget confirmed a new annual charge on homes worth more than £2 million, starting in April 2028. This “mansion tax” is expected to bring in around £400 million a year and put simply is an increase on their council tax. While it only directly affects a small slice of the market, changes at the top often ripple through, influencing confidence and decisions across different price ranges.

Outside the luxury market, most homeowners won’t feel the levy directly, but the overall Budget still matters. When taxes squeeze household budgets, confidence tends to dip. Buyers become more careful, especially first-time buyers and those moving up the ladder. This can slow price growth and make people focus more on value and stability.

For mid-range sellers, pricing is now more critical than ever. Homes priced fairly from the start usually attract strong interest, while those priced too high may sit longer as buyers get pickier. With many families reassessing what they can afford, well-presented, accurately priced homes will have the edge.

For buyers, a calmer market can be an advantage. Less pressure means more time to plan and negotiate. This is especially true if you’re thinking about moving in early 2026. With fewer rushed offers and more homes likely to come back on the market as confidence steadies, prepared buyers could find opportunities that were harder to grab before.

Overall, transaction levels should stay steady but on the quiet side. Investors might pause to rethink returns with higher taxes, and movers may wait for a clearer economic picture. Still, the market’s foundation looks stable—no signs of forced sales or major trouble. It’s a climate of caution, not crisis.

We believe the impact of yesterday’s budget changes won’t truly be felt until the New Year. As of today, what we can confirm is that over the past few weeks, viewing numbers have declined, yet agreed sales have remained steady. This trend likely reflects many casual buyers waiting to see how the market evolves, while serious buyers continue searching for their ideal home.

If you’re considering a move in 2026, the smartest first step is understanding where you stand in this new tax landscape. Talking it through can help you see how the Budget affects your home’s value, demand in your price range, and the best timing for your plans. For sellers, it’s now more important than ever to price your property realistically and competitively. What sellers should also be aware of is that currently we are finding many buyers are taking longer than usual to prove their buying position after offers are accepted. Therefore, sellers should keep their properties fully available until buyer due diligence is complete and all commitments are confirmed in writing. Partnering with a trusted local estate agent who understands all market conditions can make a real difference. That’s where Gibson Honey can help—get in touch with us on 01895 677766 or 01895 699077.

And for buyers who want an edge in a slower, more selective market, registering for Heads Up Alerts on our website means you’ll see new or soon-to-launch properties before they hit the big portals. Early access can make a real difference when fewer buyers are acting fast. Also our advise for buyers who wish to be taken seriously should avoid making casual offers. Ensure you are genuinely interested in a property before submitting an offer. This approach builds trust with estate agents and prevents unnecessary wasted time and effort for sellers. Keep in mind that making an offer can raise sellers’ expectations, and given the significance of this transaction, it’s important to avoid creating false hope!

The November Budget has reshaped the financial backdrop for UK households. The market is still stable, but smart planning matters more than ever. Knowing how these changes affect your next move will help you step into 2026 with confidence.