The Budget: What it Means for Sellers & Buyers in Biggin Hill, Westerham and Surrounding Villages

The Budget: What It Means for Sellers & Buyers in Biggin Hill, Westerham & Surrounding Villages

After months of speculation regarding potential new property taxes, the Chancellor’s Budget has finally landed and for those buying or selling in Biggin Hill, Westerham, and nearby villages, the news is largely positive as very little has changed for most homeowners and buyers. Most of the widely-rumoured changes have not happened and that stability is welcome news as we look forward into 2026.

With major new property taxes off the table and interest rates starting to ease, buyers may find it easier and feel more confident to get on or move up the property ladder.  This could spark increased activity and renewed confidence in the local market, encouraging more people to resume their moving plans after a cautious year.

Key points that sellers and buyers need to know:

No Annual Property Tax on Homes Over £500,000

One of the biggest uncertainties in recent months was the possibility of a new annual tax on homes valued above £500,000.  This is not happening, bringing relief and clarity to homeowners and hopefully restoring confidence to the market.  Buyers and sellers can now move forward without the uncertainty of an annual charge hanging over their decisions.

With many properties locally falling around or above this level, this decision is likely to:

• Encourage buyers who delayed decisions during the uncertainty
• Prevent artificial pressure on values around the £500k threshold
• Support a more predictable sales environment heading into next year
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The current stamp duty system remains exactly as it is, providing continuity for those planning a move:

• Payable on homes above £125,000 in England and Northern Ireland
• First-time buyers keep their £300,000 allowance on homes up to £500,000
• Still a one-off payment at completion

A New ‘Mansion Tax’ for £2m+ Homes

From 2028, properties valued over £2m will face a new council tax surcharge the long-rumoured ‘mansion tax’.

The government expects this to affect just over 100,000 homes, concentrated predominantly in London and the South East.

The additional annual charges will be:

• £2,500 for properties valued over £2m
• £7,500 for properties valued over £5m

These figures are far lower than had been worried about and the change impacts only the very top end of the market, leaving the vast majority of homeowners unaffected. For most sellers in this area this change is unlikely to have any impact on demand or pricing.

Higher Property Income Tax Rates for Landlords

Although this Budget kept property taxes largely stable, landlords will see further tax changes from April 2027, with property income tax rates rising by 2% across all bands:

• Basic rate: 22%
• Higher rate: 42%
• Additional rate: 47%

This follows last year’s increase to Stamp Duty for additional homes (from 3% to 5%), as well as the introduction of measures such as the Renters’ Rights Act and upcoming energy efficiency requirements.

For many landlords, this will represent another squeeze on net income. However, rent rises in the last five years have helped to cushion the impact of increasing costs.

Some landlords may choose to sell, shaping the supply of homes coming to market.

This could mean:

• A slight increase in stock hitting the market in certain price ranges
• More choice for buyers - which can attract more activity overall
• Higher competition between sellers in areas with more rental properties

However, given strong rental demand and limited supply in the area, the shift is likely to be moderate rather than dramatic.

What does this mean if you want to buy or sell in the area?

We hope that now we have an end to months of unhelpful uncertainty and worrying theories that buyer confidence and market activity will improve as we head into 2026.  If you want to make a move there is no longer a reason to wait.  If you're considering selling or buying in Biggin Hill, Westerham or nearby villages, we’re here to guide you through the current market. Please do get in touch.

Debbie & Ewen

Bunting & Bunting