In November 2025, the UK government delivered its latest fiscal plans for the country. The bond market scrutinised every word, given that the United Kingdom pays one of the highest premiums in the developed world on its national debt, with the cost of servicing its existing debt rising more than a third since 2022.
The government decided to raise taxes by £26 billion (€30 billion) to primarily increase its future fiscal buffer against further shocks and to fund increased spending in a number of areas. Within these tax changes, there were some that will directly impact the real estate market.
The first of these is a council tax surcharge. This annual tax surcharge will be placed on homes valued above £2 million (€2.3 million). This has the potential to dampen both price and transaction levels at the upper end of the market, but the size of the impact on both nationally is unclear. Expensive properties are concentrated in London and Southeast, so (higher end) trans
