The 2025 Budget: What It Actually Means for Your Hampshire Property Plans
Right, so Rachel Reeves has delivered her budget, and after weeks of speculation, leaked documents, and frankly exhausting rumours, we can finally tell you what’s actually happened.
We’ve spent the last few hours going through the announcements, the OBR forecasts, and all the detail, and honestly? For most of you planning to buy or sell in Hampshire, it’s far less dramatic than all the noise suggested it would be.
After 25 years of helping people move across Southampton, Winchester, Chandler’s Ford and beyond, we’ve seen a few budgets in our time. We’ve learned that the speculation is usually worse than the reality, and that what matters most is understanding exactly how any changes affect your specific situation.
So let’s cut through the headlines and tell you what today’s budget actually means for you.
First, The Big Picture (We'll Keep This Brief, Promise)
Look, we know you probably don’t want to wade through pages of economic forecasts, but here’s what you need to know:
The economy’s growing, but not brilliantly. They’ve upped this year’s forecast to 1.5%, but then downgraded the next few years. Basically, we’re plodding along rather than racing ahead.
The Chancellor needs to raise £26 billion by 2029-30. She’s doing that mostly through tax rises rather than through dramatic property market reforms, which is actually good news for anyone planning a move.
Here’s what this means in plain English: Hampshire’s property market isn’t facing any seismic shocks. The changes are gradual, predictable, and mostly affect people’s income rather than property itself.
The Big Relief: Your Stamp Duty Hasn't Changed
This is the one that had everyone worried. Would stamp duty be abolished? Would sellers have to pay it? Would there be new thresholds?
The answer: none of the above. Stamp duty is staying exactly as it is.
We can’t tell you how many calls we’ve had over the past few months from worried clients. Well, here’s your answer: nothing’s changed. Your stamp duty bill is exactly what we said it would be when you started your search.
Here’s What You’re Still Paying:
First-time buyers:
- Nothing on the first £300,000
- 5% on anything between £300,000 and £500,000
Moving home:
- Nothing on the first £125,000
- 2% from £125,000 to £250,000
- 5% from £250,000 to £925,000
Second homes or buy-to-let:
- Add 5% to every band
What This Means in Real Money:
- That three-bed semi in Chandler’s Ford for £350,000 (first-time buyer): £2,500 stamp duty
- Moving to a four-bed in Winchester for £450,000: £11,250
- That nice detached place in Fair Oak for £600,000: £17,500
Same as last week. Same as next month. No surprises.
If you’ve been planning a move and you’ve factored in your stamp duty costs, you can stop worrying. Just carry on with your plans.
The "Mansion Tax" - But It Probably Doesn't Affect You
Alright, this is the one that did happen. If you own a property worth over £2 million, you’re going to pay an annual council tax surcharge.
Before anyone panics: in 25 years of selling property across Hampshire, we can count on one hand how many clients this actually affects. We’re talking about a tiny slice of the market.
Here’s How It Works:
- £2-2.5 million property: £2,500 a year extra
- £2.5-3 million: around £5,000 a year
- £5 million+: £7,500 a year
Who Does This Affect in Hampshire?
- Really stunning period properties in Winchester city centre
- Handful of waterfront places in Southampton
- Large rural estates and manor houses
If you’re buying or selling in Chandler’s Ford, most of Southampton, most of Winchester, Eastleigh, Fair Oak, Hiltingbury, West End, Botley… this doesn’t touch you.
Your three-bed semi, your four-bed detached, your nice townhouse near the station – none of these are anywhere near £2 million. You can stop worrying about the mansion tax. It’s not for you.
For Those Who Are Affected
If you do own a property over £2 million, an extra £2,500 to £7,500 a year is noticeable but not catastrophic. It’s another bill, like council tax itself.
And remember what didn’t happen – there was talk of charging capital gains tax when you sell your main home over £1.5 million. That would have been tens or hundreds of thousands. This annual charge, while annoying, is far less painful.
Some of you might now be thinking about downsizing. If that’s you, let’s have a chat. We know what’s available and what your property would realistically achieve.
The Stealth Tax: Income Tax Thresholds Frozen Until 2030
This is the one that will actually affect most of you, though you probably won’t notice it immediately.
The thresholds for when you start paying income tax, and when you move into higher tax brackets, have been frozen until 2030. They were already frozen until 2028, so this extends it by another two years.
What Does This Actually Mean?
Let’s say you earn £45,000 now. As your salary goes up with inflation over the next few years – maybe to £50,000 by 2028 – you’d normally expect the tax thresholds to go up too. But they won’t. They’re frozen at:
- Personal allowance: £12,570
- Higher rate starts at: £50,270
So as your wages rise, more of your income gets taxed at higher rates. It’s called “fiscal drag” by the economists. We call it a stealth tax because your tax rate doesn’t change, but you pay more tax overall.
How Does This Affect Property?
Honestly? It means everyone’s take-home pay grows more slowly than it would have done. For first-time buyers trying to save a deposit, it’ll take a bit longer. For families thinking about upsizing, you might need to adjust your budget expectations slightly downward.
It’s not dramatic – we’re not talking about the market grinding to a halt. But it does mean that over the next few years, buyer affordability will be squeezed a bit. If you’re selling, realistic pricing becomes even more important. If you’re buying, factor in that your take-home pay won’t grow as fast as you might have hoped.
Good News for Families: Two-Child Benefit Cap Scrapped
The rule that limited child tax credit and universal credit to your first two children is being scrapped.
This is genuinely good news for larger families, and it matters for the property market. Families with three or four kids have been under real financial pressure. Removing this cap means they’ll have a bit more stability, which should support demand for larger family homes.
If you’re selling a four-bedroom house in one of Hampshire’s good school catchments – think Chandler’s Ford, Fair Oak, parts of Winchester – this policy should help maintain strong demand from families who actually need that space.
What About Landlords?
You’ll be relieved to hear that the rumoured National Insurance on rental income didn’t happen. That was the one that had every landlord we know seriously considering whether to get out of the market.
Your rental income is still taxed as it was before. Section 24 restrictions are still there (where you can’t offset all your mortgage interest), but nothing new has been added.
The stamp duty surcharge on additional properties remains at 5% (that went up last year, but it’s not changed this budget).
Should You Stay or Should You Go?
We’re still seeing some landlords selling up because the cumulative tax changes over recent years have made returns pretty tight. But there’s no new bombshell that forces your hand.
If your properties still make sense financially, carry on. If they’re marginal, maybe it’s time to have that conversation about selling. Either way, it’s a portfolio-by-portfolio decision, not a panic situation.
What All the Fuss Was About: Things That Didn't Happen
Let’s talk about all the scary headlines that turned out to be nothing:
✗ Stamp duty abolition or reform – Nope. It’s exactly as it was.
✗ CGT on your main home – Didn’t happen. Private residence relief is still there. Sell your house for whatever it’s worth, pay no capital gains tax.
✗ National Insurance on rental income – Didn’t happen. Landlords breathe easier.
✗ Wholesale council tax overhaul – Apart from the £2m+ surcharge, nothing changed for normal homes.
✗ Some complicated annual property tax replacing everything – Didn’t happen.
The speculation was exhausting, wasn’t it? And in the end, most of it came to nothing.
What This Means for Different Types of Buyers and Sellers
First-Time Buyers (£200,000-£350,000):
Your stamp duty bill hasn’t changed, which is good. The income tax threshold freeze will make saving slightly harder, but it’s a gradual thing, not a sudden shock. The two-child cap removal might help some of you if you’re planning a family.
Bottom line: No major obstacles thrown in your way. If you’ve been saving for that deposit, keep going. The fundamentals haven’t changed.
Families Buying £350,000-£600,000 Properties:
This is most of you – buying in Chandler’s Ford, Hiltingbury, Eastleigh, Fair Oak, parts of Winchester and Southampton. Honestly, this budget barely touches you.
Stamp duty is the same as it ever was. No new property taxes apply to you. The income tax freeze will nibble away at everyone’s income a bit, but we’re talking about a gentle squeeze, not a crisis.
Bottom line: Carry on with your plans. If you’ve found the right house at the right price, go for it.
Higher-Value Homes (£600,000-£2 million):
You’re in probably the best position. Stamp duty is unchanged (yes, it’s still expensive, but you knew that). The mansion tax doesn’t apply to you. CGT on main residence didn’t happen.
Bottom line: You dodged several bullets. The worst-case scenarios didn’t materialise.
Luxury Market (£2 million+):
You’re the ones with the new annual charge. £2,500 to £7,500 a year, depending on value. It’s annoying, but context matters – you avoided CGT on sale, wealth taxes, and other more painful alternatives.
Some of you might accelerate downsizing plans. If that’s you, we should talk.
Buy-to-Let Investors:
You avoided National Insurance on rental income, which is the big win. The 5% stamp duty surcharge is still there (from last year), and Section 24 restrictions continue to bite. The income tax threshold freeze affects your tenants’ ability to pay rent increases, so factor that in.
Bottom line: No new hammer blows, but the cumulative pressure from previous changes continues. Time to properly assess whether each property still works for you.
Our Honest Take
We’ve been doing this for 25 years. We’ve seen boom times and crashes, multiple recessions, Brexit, a pandemic, and more budgets than we can count. Here’s what we’ve learned:
Budgets rarely change everything.
Yes, the details matter. Yes, you need to understand what applies to you. But the fundamentals of property don’t change: location, condition, pricing, timing based on your life not the tax calendar.
Hampshire’s market is resilient.
We’re not London, where a 2% tax change can shift the whole market. We’re a region where people actually want to live, work, and raise families. We’ve got brilliant schools, easy access to London, beautiful countryside, and Southampton’s waterfront. Those don’t stop mattering because of a budget.
This budget could have been much worse.
All that speculation about stamp duty chaos? Didn’t happen. CGT on your main home? Didn’t happen. Mass landlord exodus triggered by NI on rent? Didn’t happen.
For most of you, your situation today is virtually identical to your situation yesterday. And that’s actually good news.
What You Should Actually Do Now
If You’re Planning to Buy:
Stop worrying about the budget and focus on finding the right property. Your stamp duty hasn’t changed. There’s no tax advantage to rushing or delaying. Just find a house you love, in a location that works for you, at a price that makes sense.
When you find it, give us a call. We’ll help you understand what’s realistic, what to offer, and how to get your move done without stress.
If You’re Thinking About Selling:
Your buyers’ stamp duty costs haven’t changed, so that’s not going to affect demand. Price realistically for the market – that’s always been true and it’s still true now.
Get your house looking its best. Great photos matter. Being on the right platforms matters. Having someone who actually answers the phone and chases things up matters.
If you want an honest valuation – not an inflated one to win your business, but a realistic one based on what’s actually selling – we’re here.
If You’re a Landlord:
Take a proper look at your portfolio. Not in a panic, but calmly. Does each property still make financial sense? Are you happy being a landlord for the next 5-10 years?
If yes, carry on. If you’re marginal, or if you’re just tired of the hassle, let’s have a conversation about your options. There’s no rush, but there’s also no point holding properties that don’t work for you anymore.
If You Own a £2 Million+ Property:
Factor in the new annual charge to your planning. If you were already thinking about downsizing, this might tip the balance. If you’re staying put, it’s just another bill to budget for.
Either way, we can give you a realistic view of what the market looks like right now.
A Final Word From Us
We know property can feel complicated, especially when there’s a budget involved. The headlines scream about tax rises and market chaos, and it’s easy to feel overwhelmed.
But here’s the thing: we do this every day. We know Hampshire inside out. We know what properties are actually selling for, not what Rightmove says they’re “on” for. We know which areas are hot and which ones need realistic pricing. We know the good solicitors, the decent mortgage brokers, the surveyors who actually turn up on time.
More importantly, we’ve learned over 25 years that successful property moves come down to simple things: finding the right house, pricing it properly, presenting it well, and working with people who genuinely give a damn about getting you where you want to be.
The budget hasn’t changed any of that.
So if you’re thinking about moving – whether you’re a first-time buyer in Eastleigh saving for your first place, a family in Chandler’s Ford needing more space, or someone in Winchester thinking about downsizing – just talk to us.
No pressure, no hard sell, no inflated valuations to win your business. Just honest advice from people who’ve been doing this since 1999 and who actually live in the communities we serve.
Quick FAQ
Should I wait to see if stamp duty gets cheaper?
It didn’t change in this budget, and there’s no indication it’ll change soon. Don’t put your life on hold for a tax change that might never come. If you’ve found the right house, buy it.
Will the mansion tax affect property values in expensive areas?
Possibly a bit, but remember it only kicks in at £2 million. For 99% of Hampshire’s market, it’s irrelevant. Even in the luxury market, it’s an annual cost rather than a huge one-off hit.
I’m a first-time buyer – does any of this make it harder?
Not really. Stamp duty is unchanged. The income tax threshold freeze will make saving slightly slower, but it’s gradual. The fundamentals – save your deposit, get a mortgage in principle, find the right place – haven’t changed.
Should landlords start selling?
Only if your properties don’t make financial sense anymore. You avoided new NI charges, which is good. But if you’ve been on the fence anyway, it might be worth having that conversation.
Will prices drop because of this budget?
We don’t see anything in here that would cause prices to drop. Gradual pressure on affordability from the income tax freeze, yes. Market crash, no.
I own a house worth £1.8 million. Should I worry about the mansion tax?
No. It only applies above £2 million. You’re not affected.
What if I’m in the middle of buying – do any of these changes affect me?
If your purchase is already underway, carry on. Nothing announced affects deals that are in progress. Your stamp duty bill is what your solicitor quoted you.
Written by the team at Rowe & Co on 26 November 2025. We’ve done our best to explain everything clearly, but tax is complicated and everyone’s situation is different. For specific tax advice, talk to an accountant. For honest property advice in Hampshire, talk to us.
We’re raising property standards across Hampshire, one conversation at a time.
