What the 2025 Autumn Budget Means for New Build Homes: And What It Means for You

Here’s a breakdown of what’s changed, and what it means for first-time buyers, families, and new build buyers generally.

Key Housing & Tax Changes from the Budget

• New “Mansion Tax” (High-Value Council Tax Surcharge): Under the Budget, properties valued at £2 million and above will face a new annual surcharge in addition to the current council tax charge.

• The surcharge will start at around £2,500 per year for homes just above the threshold, rising to £7,500+ for homes worth £5 million or more.
   
• It will apply to fewer than 1% of properties, according to government estimates.

This tax focuses on luxury, high-value properties, so most new builds, including Hill homes designed for first-time buyers and mid-market purchasers, remain unaffected. 

So, it’s actually a good time to discover high-quality, energy-efficient new build homes without added tax pressures. Explore our homes today and find the home that’s right for you.

• Increased Tax on Rental Income for Landlords

The Budget raises taxes applied to income from rental properties, increasing the fiscal burden on landlords. 

This may deter some investors from purchasing buy-to-let properties, reducing competition for owner-occupier buyers - easing pressure on mid-market resale prices.

• Market Uncertainty: Price Drops & Sluggish Demand for High-End Homes

Before the Chancellor’s statement, the high-end property market had already slowed. Sales of homes over £2 million were down about 13% compared to last year, likely due to uncertainty over new property taxes.

For mid-market homes (under £500,000), the impact is less, although confidence also dipped, with many potential movers putting their decision on hold. If demand for high-end homes drops, it could push more buyers toward mid-priced homes, offering better value and stability. Find out how our ways to buy could help you buy your dream new home. 

What This Means for First-Time Buyers

• Good news: First-time buyers of mid-market new builds are mostly unaffected.
   
• With investors likely to be discouraged by higher taxes on landlords, competition from buy-to-let purchasers could ease, providing first-time buyers with more opportunities.
   
• New build homes continue to offer great value: contemporary, energy-efficient designs prioritising comfort and functional layouts, and predictable maintenance costs, increase appeal compared to older properties.

For first-time buyers, now could be a good time to get on the ladder, especially with a new build home.

What This Means for Families and Upsizers

• The downward pressure on high-end demand may lead to better value across the mid-market.
   
• New builds with their contemporary layouts, energy efficiency, and amenities often deliver better long-term affordability than second-hand homes.

Buyers looking to move up or expand space could benefit from improved availability and softer market conditions in the mid-to-upper market bracket.

What Should You Do If You’re House-Hunting Right Now
 

1. Act sooner rather than later: with investor demand weakening and market conditions shifting, now may offer better value and less competition.
2. Factor in long-term costs and savings: new build homes often mean lower maintenance and energy bills.
3. Don’t discount new build homes: they are likely to offer the most stable value and least risk under the new tax regime.
4. Choose developments with transparency and support: developers genuinely focused on home buyers will stand out. Discover what it’s really like to live in one of our new build homes. Don’t take our word for it! - hear direct from our homeowners.
    

The 2025 Budget has shifted the property market by introducing a clearer distinction between high-end, luxury properties and the majority of homes that appeal to most homebuyers.

For first-time buyers, families, and those interested in new builds, this offers a real opportunity: less competition, potentially more supply, and a market that favours quality mid-market housing over speculative investment.

If you’re considering a new home, whether for your first purchase or moving up the ladder, it’s a good time to start exploring developments with strong long-term value, like Hill’s upcoming properties.

Get in touch for help exploring what this Budget means for your next home, or to discuss how our developments match your needs.