This week’s Autumn Budget delivered by Chancellor Rachel Reeves introduced a number of big changes, especially for homeowners with high-value properties, landlords, and those saving for a deposit.
At Skyline, we believe in cutting through the noise and helping you understand what government changes mean for your real-world decisions - whether you’re buying, remortgaging or investing.
Here’s a quick breakdown of what you need to know, and how it could affect your next mortgage move.
A New ‘Mansion Tax’ on £2m+ Homes
The Chancellor unveiled a new annual charge for properties worth over £2 million in England - dubbed the ‘Mansion Tax’. From April 2028, homeowners will pay:
£2,500 per year on properties worth £2-£5 million
£7,500 per year on properties over £5 million
This is an additional charge on top of Council Tax, and will rise annually in line with inflation from 2029-30 onwards.
While this only affects a small slice of the market (mostly London and the South East), experts warn it could create a ripple effect across the market, slowing down movement at the top and locking up valuable housing stock.
Cash ISA Limit Cut - What It Means for Mortgage Lending
One of the most controversial announcements was the decision to reduce the cash ISA limit to £12,000 from April 2027 for savers under 65. The remaining £8,000 of the £20,000 annual allowance will only be available in stocks and shares ISAs.
Why does this matter for mortgages? Because building societies rely on cash ISA deposits to fund their mortgage lending. With reduced inflows, there’s concern they may have less to lend - leading to tighter lending conditions and potentially higher mortgage rates.
It may also hit first-time buyers who use ISAs as a short-term tax-free way to save for a deposit, especially if their savings end up in taxed accounts instead.
Income Tax Rise for Landlords
The Budget didn’t include the rumoured National Insurance changes for landlords, but it did bring a 2% income tax hike on property income from April 2027. The new rates will be:
Basic rate: 22%
Higher rate: 42%
Additional rate: 47%
Landlords operating as individuals, not through limited companies, will be most affected. The NRLA warns this could drive up rents and reduce the supply of rental properties, worsening the UK’s rental crisis.
So, What Does This Mean for You?
If you’re a...
Homeowner or downsizer: If your property is close to the £2m mark, you might want to act before the Mansion Tax takes effect in 2028. Downsizing sooner could avoid higher taxes and boost your retirement plans.
First-time buyer: Saving through ISAs may be less attractive in future, so you might need new strategies. Speak to an adviser to make sure your deposit plan is still working hard for you.
Landlord: Consider restructuring how you hold your properties. If you're not already operating through a limited company, now may be the time to explore it.
Mortgage borrower: The ISA changes may affect mortgage product availability, especially for more complex borrowers. If you're due to remortgage or buy in the next 6 to 12 months, now’s a great time to lock in.
Our take on the Budget at Skyline
At Skyline, we always act in your best interest, and that means helping you navigate change with confidence.
The property and mortgage landscape is shifting again, and decisions made now could affect your finances for years. Whether you're upsizing, investing, or simply wondering what this means for your next move, we're here to talk through the options.
Book a free consultation with Tony, our independent mortgage expert, and let’s make a plan that works for your goals - no jargon, no hard sell.
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