This year’s Budget brings further changes to the costs of owning and investing in property, alongside support for first-time buyers. For those considering a London purchase, our view is that careful selection and informed negotiation remain central to buying well.
For the prime London market, the forthcoming High Value Council Tax Surcharge remains a significant consideration. First announced in last year’s Budget, it will apply to homes in England valued at £2 million or more from April 2028, with annual charges ranging from £2,500 to £7,500 in addition to existing council tax. This Budget provides further detail on the arrangements for deferrals, discounts and exemptions.
These additional costs will naturally feature in buyers’ calculations. We expect them to become part of negotiations, particularly where a property sits close to a charging threshold. For those purchasing a long-term home, however, location, quality and suitability will continue to carry considerable weight alongside the annual cost of ownership.
Private landlords face further pressure. From April 2027, the announced income tax rates on property income in England will be 24%, 44% and 49%, two percentage points above the rates previously announced for that year. For investors holding property personally, this places greater emphasis on understanding returns after tax and all associated costs.
Some owners may reassess their portfolios as a result, potentially bringing additional properties to market. Should that happen, it could create opportunities for purchasers, although the impact will vary considerably by location and property type.
There is also support for those taking their first step onto the ladder. The Your First Home scheme is expected to open for applications in February 2027, offering eligible buyers of new-build homes in England a 20% government equity loan, interest-free for five years, with a minimum deposit of 2.5%. London price caps will be £650,000 in inner London and £500,000 in outer London, with full eligibility details still to follow.
Our view at Edingtons is that the Budget reinforces the importance of approaching a purchase with a clear brief and a realistic understanding of value. Buyers who are well prepared and able to proceed can be well placed to negotiate when a seller’s circumstances create an opening.
The opportunity lies in identifying the right property, understanding its strengths and limitations, and agreeing a price that reflects both the market and the costs ahead. Access to off-market opportunities, thorough due diligence and experienced negotiation all have a role to play.
If you are considering a move or reviewing your investment plans, we would be delighted to discuss how Edingtons can help you find and secure the right property.