Thinking of moving in 2026? What the November Budget really means for home movers & landlords
The latest Budget has created a shift in the financial landscape that will influence how people buy, sell and let property over the next few years. With household costs rising, tax on property income up 2% and a new levy announced for homes over £2 million, planning ahead has never mattered more.
Our aim is to break down what actually affects you, how it may influence demand locally, and what steps you can take now to be in the strongest position for 2026.
For landlords, while new taxes and levies tighten the screws on some portfolios, the knock-on effects could reshape rental supply and demand and ultimately, benefit landlords who stay long-term and let well.
What’s changed and why it matters
This year’s Budget wasn’t dramatic, but several tax decisions will alter behaviour in the market. The Government is aiming to raise around £26 billion over the next five years, and part of that comes from continuing to freeze income tax thresholds until 2030–31. As wages increase, more people will fall into higher tax brackets. The effect is subtle but real: disposable income tightens, affordability shrinks, and households become more cautious about big decisions.
There was also clarification around National Insurance being applied to certain salary-sacrifice pension contributions. For many families and higher earners, this removes one of the more efficient ways to save, again contributing to tighter budgets.
And then there’s the headline that has caught most attention: a new annual levy on homes valued above £2 million, starting in April 2028. Labelled by some as a “mansion tax”, it’s expected to generate around £400 million a year. Only a small proportion of UK homes fall into this bracket, but tax changes at the top end often ripple down, affecting confidence across multiple price points.
What hasn't changed
The public were expecting homes worth £500,000 - £2 million to be subject to a new annual property tax which would impact approximately £210,000 currently for sale in this bracket. The good news is this hasn't been imposed which will restore buyer activity after a few months of anticipation.
What’s changed for landlords
- Rental income tax goes up: As part of the Budget, taxes on property-related income (including rental income) will rise by 2 percentage points across all tax bands.
- Still-uncertain proposals around National Insurance on rental income: There has been talk in advance of the Budget of a possible extension of National Insurance (NI) contributions to rental income (something landlords have largely avoided until now).
- High-value home surcharge from 2028: For landlords owning properties over £2 million, the new annual levy (starting 2028) may add to the overall holding costs.
Why this could mean opportunity — not necessarily disaster
Despite the pressure on cash flow, there are strategic reasons why landlords who act carefully now may remain well positioned:
- Rental supply could shrink, thus pushing up demand and rents. With landlords under increased tax pressure, some may sell. Others may pause acquisitions. That reduction in supply, especially in higher-value and mid-market rental properties, could translate into tighter competition among tenant, allowing responsible landlords to increase rents or re-let properties more easily. This was a key warning from analysts: fewer landlords = less supply, which means rents may rise.
- More selective tenants, but greater yield potential. With home-buying affordability constrained for many, demand for rentals may grow, particularly in the mid-price range. For landlords who invest in well-presented, energy-efficient homes, this could mean stable demand and stronger returns.
- Long-term investors still in it for the yield and value growth. Investors with a long-term horizon often weather tax changes best. With house price growth and rental demand likely to remain relatively robust (especially outside London), rental properties may continue to offer good returns after management and tax costs are factored in.
For tenants
We know that higher rents squeeze tenants, many of whom are already facing rising living costs. Ultimately, the new flurry of tax and yield pressures may lead to tighter supply, which could push up rents, perhaps without better property standards.
At Sandersons UK, we believe in responsible, ethical letting. If you’re a landlord working with us, we’ll help you stay profitable, but also treat tenants fairly, maintain high standards, and communicate honestly. Over-burdening tenants with rent hikes hurts everyone: reputation, occupancy rates, and long-term returns.
What this means for sellers of higher-value homes
For owners of homes above £2 million, this levy will inevitably change buyer behaviour. Some buyers who could previously stretch into this range may now pause once they realise the annual running cost. That hesitancy could lead to:
• Softer demand at the premium end
• Longer selling timeframes
• More conservative offers
If you’re considering a move in 2026, there is a strong argument for preparing early. Presenting your home impeccably, pricing competitively and launching strategically will place you ahead of any wider cooling in sentiment. At Sandersons UK, we’ve seen time and again that well-planned early preparation gives sellers a significant advantage in uncertain markets.
Buyers in the £2m+ bracket: how to plan ahead
For buyers, this environment brings both opportunity and new calculations. With competition likely to ease, you may find more negotiating power than in previous years. But you’ll also need to factor in:
• Future holding costs
• Energy efficiency and running expenses
• Mortgage affordability in a higher-tax environment
• The annual levy from 2028
It’s no longer just about the purchase price. For long-term planning, the overall cost of ownership matters more than ever.
How the wider market is likely to respond
Most households won’t be directly affected by the new levy, but the broader economic backdrop still shapes behaviour. When taxation squeezes income rather than rising costs alone, confidence tends to dip. We expect:
• First-time buyers to be more cautious
• Fewer speculative moves
• Mid-market buyers taking extra time to reassess affordability
• Increased focus on value, longevity and sensible pricing
This doesn’t point to a falling market, simply a more measured one.
Sellers in the mid-market: pricing and presentation are critical
In a cautious climate, homes that are accurately priced from day one consistently achieve stronger interest. Over-pricing in the early weeks often results in a slower sale, which can lead to price reductions later and a less confident buyer pool.
Our own data consistently shows that well-presented, realistically priced homes attract the best offers. We invest heavily in presentation with magazine-quality photography, professional video tours, drone imagery and a strategic phased launch across portals .....because it works. It’s how we help clients secure the strongest price, regardless of market hesitancy.
Buyers: a more balanced market brings opportunity
For buyers planning a move in early 2026, a steadier market enables better decisions. With slightly more stock expected and fewer people rushing to offer, you’ll have:
• More time to plan
• Greater room to negotiate
• Less pressure to make instant decisions
Our Heads Up Alerts are particularly valuable in this kind of market. You’ll see new and soon-to-launch homes before they appear on Rightmove, Zoopla or OnTheMarket, giving you a meaningful head start.
Will the number of home moves change?
We expect transaction volumes to remain steady but modest. Investors may tread carefully as they reassess yields. Some upsizers and downsizers may wait for clarity. But it’s important to stress: there are no signs of instability or forced selling. This is a cautious market, not an uncertain one.
Thinking of moving in 2026? Here’s your next step
If you’re considering a move in the next 12–18 months, gaining a clear understanding of your position is the most valuable thing you can do now. We can help you understand:
• How the Budget affects demand in your price bracket
• What buyers are prioritising right now
• Whether preparing your home for market early will strengthen your position
• The best timing for launching your property
And if you’re a buyer, early access to properties will give you a genuine advantage.
Let’s have a conversation
What questions do you have about the Budget or moving in 2026? Let us know and we’ll be happy to help.