As the dust settles on the chancellor's 2025 budget, we can begin to assess our situation in Stockport.

As far as property goes, headline announcements included the tax on property income and the mansion tax.

But there's lots more to unpack. Fortunately, our friends and sponsors at Julian Wadden - the local estate and lettings agents - are here to do just that.

Tax on Property 

This unexpected announcement will see a 2-percentage-point increase in tax on property income from April 2027.

The rise will apply across:

• Basic rate taxpayers: from 20% to 22%
• Higher rate taxpayers: from 40% to 42%
• Additional rate taxpayers: from 45% to 47%

Julian Wadden said: "In a climate of rising costs, which means possibly tighter margins, the support of a professional letting agent becomes more valuable than ever.

"By optimising rental yields, reducing void periods, ensuring compliance with evolving legislation and advising on market-driven pricing, agents can help landlords protect income streams and adapt to policy changes with confidence."

Mansion Tax 

This tax - one of the 'headline' announcements in the budget - is an annual levy on properties valued above £2 million, which will come into effect via a council tax surcharge from 2028.

This will mean:

• Around £2,500 per year for properties worth just over £2 million
• Up to £7,500 per year for homes valued above £5 million

A Julian Wadden spokesperson said: "This announcement finally brings long-awaited clarity to the upper end of the property market. With clear guidelines in place, agents can now better advise landlords, investors and homeowners on how to adapt their strategies.

"However, it remains to be seen what effect the £2m threshold will have, as it will artificially influence pricing behaviours around homes around this value.

"According to industry data, 85% of homes above £2m are located in London and the Southeast, and though these properties account for just 0.6% of annual transactions, they generate over 20% of total stamp duty receipts. Properties worth more than £5 million will see the surcharge increase to £7,500 per year, the maximum levy.

"In the short term, we may see a pause in sales of properties at these price points, as homeowners weigh up their options, possibly followed by a surge as some may choose to sell to avoid ongoing costs when the implementation kicks in.

"An alternative perspective is that the policy may generate less revenue than anticipated due to it being deferrable. If opposition parties signal that they intend to reverse the measure, many homeowners may choose to wait and see, holding off on major decisions until the next election due in 2029.

"The next six to twelve months will be crucial in understanding how the market responds."

If you have any questions about how the Budget affects you and your property, speak to one of the Julian Wadden team today.