The November 2025 Budget introduces a series of tax adjustments that, while not as dramatic as some have speculated, will influence buyer behaviour over the next few years. The headline figure is the government’s intention to raise £26 billion over five years, largely through the continued freeze on income tax thresholds until 2030–31. As wages rise, more households will drift into higher tax bands, reducing disposable income and tightening affordability across the mid-market.

A further shift comes from applying National Insurance to certain salary-sacrifice pension contributions — a change that will be felt most by professionals and higher earners, including a large proportion of our regional buyer base. It reduces one of the more efficient savings routes savvy professionals have relied on and may encourage more thought and pragmatism when planning a move.

At the top end of the market, the new annual levy on homes above £2 million and a higher rate for homes above £5 million — due from April 2028 — will have a broader influence than its limited scope suggests. While relatively few properties locally fall into this bracket, tax policy at the premium end often shapes sentiment across several tiers. Buyers who might once have stretched upward may now pause, and sellers of larger country homes may see longer negotiations and more price sensitivity.

For lower to middle-priced properties, the picture is more balanced. The levy itself won’t directly affect this part of the market, but the wider tightening caused by frozen thresholds and reduced tax efficiency tends to temper buyer urgency. Confidence dips before prices do — meaning homes that are well-priced and well-presented will continue to perform, while those launched too ambitiously may sit longer than they would have a year ago.

Buyers are likely to take a more measured approach through 2026, favouring energy efficiency, lower running costs and strong long-term value. For many, this brings opportunity: less competition, more negotiation room, and the ability to plan without pressure. For others, particularly those moving up the ladder, understanding the full picture of affordability — mortgage costs, utilities, taxation and lifestyle spend — becomes essential.

For landlords, the Budget brings further considerations. The freeze on income tax thresholds and the reduction in pension-related tax efficiencies place additional pressure on rental yields that were already tightening. With borrowing costs still elevated and maintenance obligations rising, many landlords will now take a closer look at whether their portfolios remain financially resilient. Some may opt to consolidate or release capital in 2025–26, while others will shift their focus toward properties with more reliable long-term rental demand.

We expect transaction volumes to remain steady but restrained. Upsizers and downsizers may delay until the economic outlook becomes clearer, and investors will be recalculating yields against higher tax burdens. That said, there are no signs of instability: this is a cautious market, not a distressed one.

If you’re considering a move in 2026, the most useful starting point is clarity. Understanding where your home sits within this changing landscape — its likely value, its current demand level, and the timing that best suits your plans — will allow you to prepare with confidence. We’re very happy to talk through the details with you.

For buyers, registering for Heads Up Alerts remains one of the most effective ways to access new or off-market homes before they reach the wider portals. In a slower, more selective market, early access is often the advantage that matters most.

The November Budget hasn’t reshaped the market overnight, but it has changed the mechanics beneath it. Taking a strategic approach now — whether you’re moving in six months or eighteen — will ensure your next step is made with both clarity and confidence.