If you live in or around Leamington Spa, the 2025 UK Budget could be more relevant than you first think. While much of the fiscal noise is national, some of the new measures are likely to ripple through to our local property market. Here’s what to know and why it matters for sellers, buyers, landlords and tenants in Leamington Spa.
A new “mansion tax” style surcharge on expensive properties
From April 2028, homeowners in England with residential properties valued over £2 million will face an annual surcharge on top of council tax. That means if you own one of those high-end homes you’ll need to plan for an extra yearly cost.
For most typical homes in Leamington Spa, this surcharge won’t apply. But for those on the luxury end of the market, it’s a significant shift: a new tax burden that carries on, year after year.
Rental income tax rises a heavier burden for landlords
From April 2027, tax on rental income will increase. That translates into higher costs for landlords which could lead to knock-on effects on rental supply or rental prices locally. For anyone buying a buy-to-let property around Leamington Spa, or already letting, this is something you’ll need to factor into your calculations.
These changes may make some landlords think twice about holding on to properties which could mean fewer rentals, or different rental market dynamics across the area.
What stayed the same and why that’s good news
Some big-ticket items were left untouched. There were no changes to stamp duty thresholds, inheritance tax bands or capital gains tax on property sales. For many home-buyers, sellers or investors in Leamington Spa, that means more certainty.
In markets where people already fear price upheaval, certainty can be a lifeline. The absence of sweeping tax shocks has helped maintain confidence among buyers, sellers and families considering a move.
What landlords and investors should be thinking about
Landlords may face squeezed margins. For smaller or already tight investments, that could tip the balance and lead to changes: fewer buy-to-lets, higher rent asks, or landlords deciding to sell rather than navigate a tougher rental market.
For prospective investors: this may shift the appeal of buy-to-let properties and influence demand across Leamington Spa and the surrounding area.
For buyers and sellers relative calm is reassuring
Because the Budget avoids drastic disruption to the majority of properties, many families, buyers and sellers can breathe easier. If you’re looking to buy or sell in Leamington Spa or simply thinking about moving, the landscape remains predictable, giving people confidence to act without fear of short-term shockwaves.
What to watch and how to plan ahead
- Top-end valuations & property appeals: If you own a high-value property, now’s a good time to check valuations and consider whether the surcharge may apply.
- Landlord strategy shifts: If you let property locally, run the numbers on how increased tax on rental income affects your yield.
- Market confidence & timing: For buyers and sellers, the relative tax stability could support the current steady market activity in Leamington Spa.
- Rental supply & pricing: If some landlords exit or rethink buy-to-lets, that could affect availability and potentially push rents higher.
Final Thoughts
Whether you’re a first-time buyer, a growing family, a rental investor or a long-term homeowner, the 2025 Budget delivers a mixed bag, reassurance for the many and a recalibration for some.
For most in Leamington Spa and Warwickshire, things will stay largely as they with a stable confident property market. For those with high-value homes or buy-to-let properties, now is the ideal time to plan ahead.
If you’re thinking about selling and want help to understand what the Budget means for your property we’re here for you. You can contact us on 01926 898080 or email [email protected].
Further Resources
Below are a collection of further reading resources that you may find useful.