Autumn Budget may deter people from renovating their homes, expert warns

"The Autumn Budget has introduced a series of measures that could make homeownership more expensive and complex. Housing expert Michael Holmes warns that these changes are likely to influence both homeowners' renovation decisions and long-term property plans. He says the new taxes and levies could have significant knock-on effects for the wider housing market and the economy. 1. Mansion Tax could discourage home improvements Holmes explains that the Mansion Tax, set to begin in 2028, will affect around 2.5 million high-value homes."

""The Mansion Tax introduces a cumulative levy on home improvements, which over time could outweigh any added value to the property," Holmes warns. Many homeowners undertake renovations for lifestyle reasons rather than purely financial gain, but this tax could change that calculation. Holmes says the measure may discourage people from upgrading their homes, particularly as improvements now carry long-term tax implications. 3. Retirees could face extra pressure Holmes notes that future increases in the tax threshold or rates could place additional pressure on long-term homeowners."

The Autumn Budget introduces measures that could make homeownership more expensive and complex. A Mansion Tax beginning in 2028 will affect around 2.5 million high-value homes. Homeowners may hesitate to carry out renovations or extensions that push properties above the tax threshold. A cumulative levy on home improvements may, over time, outweigh any added property value and reduce incentives for lifestyle-driven upgrades. Future increases in thresholds or rates may place additional financial pressure on long-term homeowners and retirees and could produce knock-on effects across the wider housing market and economy.

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