Published on 03 Nov 2025
“I’m expecting there to be an increase in Council Tax
Charles Curran, Principal & Market Data Analyst at PCL estate agency Maskells
“I’m expecting there to be an increase in Council Tax as a means of reducing the amount provided by Central Government to wealthier boroughs. However, we can’t yet determine whether this will be a function surrounding the overall value of a property itself or a direct increase in the bands alone, since a Council’s fiscal needs are met by the number of households in their borough paying, rather than by a fixed amount per property.
“We are not expecting Mansion Tax to be imposed on properties over £2m, since this would undoubtedly cause litigation over valuations and perhaps a fall in the property values. A lowering of property prices is detrimental to the mortgage lenders who hold these properties as collateral against loans, making refinancing difficult and potentially requiring the lenders to assign more capital against each loan.
“A combination of high property taxes in the form of Stamp Duty on acquisition, Mansion Tax and increased Council Tax may well force many into rented accommodation right at a time when Landlord obligations under the Renters Rights Act are forcing some Landlords out of the market, thereby reducing stock and in turn pushing rental prices up.
“Furthermore, if the Budget also calls for National Insurance payments on rental income, Landlords may seek to leave the sector as they can obtain higher returns on their investments in other asset classes. This would compound the problem above.”