Staying informed about economic and policy changes is an important part of making confident decisions in the prime property market. As trusted estate agents in Wentworth and Virginia Water, we guide our clients through these updates so they can plan their next steps with clarity.
The Autumn Budget introduced a number of measures affecting owners of higher-value homes and landlords. While some of these announcements have attracted attention, there are also encouraging signs for the market. Lower interest rates are now very much on the horizon, and we’ve seen a significant uplift in activity, with enquiries well up on last year and website traffic rising by an impressive 88%.
If you are considering buying or moving in the area, explore our Properties for sale in Wentworth Estate, Properties for sale in Virginia Water and the surrounding areas. If you have any questions, you can also visit our award-winning website or call us on 01344 843000 and email us.
The new mansion tax for homes over £2million
From April 2028, an annual surcharge will apply to homes in England valued above £2million. This ‘mansion tax’ will be collected in addition to council tax.
From our conversations with buyers following the Budget announcement, there is a clear consensus that the new council tax regime represents a mild form of a mansion tax, far less severe than many had expected. Most agree that stamp duty remains a far greater consideration when purchasing a home over £2million. With no changes made to Stamp Duty Land Tax (SDLT), this has brought renewed clarity and reassurance to the upper end of the market, setting the tone for a more stable environment as we approach early 2026.
Demand for premium homes in Virginia Water and the Wentworth Estate remains resilient. Buyers at this level continue to prioritise lifestyle, security, privacy and the unique setting these areas offer, all qualities that consistently outweigh policy changes. The fundamentals underpinning local desirability therefore remain firmly intact.
Proposed annual charges
- £2,500 for homes valued between £2m and £2.5m
- £3,500 for homes between £2.5m and £3.5m
- £5,000 for homes between £3.5m and £5m
- £7,500 for homes valued above £5m
With more homes above the £2million threshold concentrated in London and the South East, these regions will naturally feel the effects most strongly. As a result, we may see more buyers choosing to move out of London in favour of leafy suburban areas such as Virginia Water, the Wentworth Estate and the wider Surrey region, where they can find better value for money without compromising on space, privacy or quality of life.
How properties will be valued
The Valuation Office Agency will determine each property’s band, with the first valuation exercise based on 2026 values. Revaluations will occur every five years. Long-term owners who have seen considerable capital growth may find themselves brought into scope, regardless of their income or how they use their home.
Early signs of adjustment
We are already seeing subtle behavioural changes in the £2million+ market across the UK, with a modest slowdown in year-on-year sales agreed. However, in core prime areas such as Virginia Water and the Wentworth Estate, buyers continue to focus on the attributes that define these neighbourhoods, including space, privacy and access to world-class amenities. These priorities continue to outweigh annual ownership costs.
Income tax on rental income to rise for landlords
From April 2027, income tax on rental income will increase by an additional 2%, raising property income tax rates to:
- 22% basic
- 42% higher
- 47% additional
While this will impact net yields for landlords, the widely anticipated National Insurance addition did not materialise, offering some relief. Demand for high-quality rental homes locally remains strong, meaning tenant appetite is unlikely to be affected, although some investors may reassess long-term strategies.
Stamp duty remains unchanged
After months of speculation, SDLT was left unchanged. For many buyers, particularly those purchasing above £2million, stamp duty is the more substantial cost when moving home. The decision to keep SDLT as it is has been well received, and it supports a sense of certainty for those planning a move in 2025.
What this means for the wider market
Although the mansion tax affects a limited number of households, market sentiment has stabilised noticeably since the Budget. Many buyers had prepared for far more substantial measures, and with stamp duty remaining unchanged, the outlook for 2026 appears more predictable.
This comes against a backdrop of increasingly positive indicators. Interest rates are expected to fall, local enquiries are significantly up on last year, and our website traffic has grown by 88%. With the landlord tax changes not arriving until 2027 and the mansion tax delayed until 2028, homeowners and investors have time to make informed decisions, something we continue to guide our clients through every day.
Are you considering your next step?
As trusted property experts in Virginia Water, the Wentworth Estate and the wider Surrey market, we are here to offer clear, tailored advice based on decades of local insight. Whether you are reviewing your property plans, assessing your portfolio or preparing to move, our team can help you navigate the current landscape with confidence.
GET IN TOUCH
If you’re thinking of moving to the area, make sure to take a look at our latest Properties for sale in Wentworth Estate, Properties for sale in Virginia Water. If you’d like to speak to someone, a member of our expert team would be happy to help. You can call us on 01344 843000 or email us.
Ready to sell your Virginia Water or Wentworth property? Call us on 01344 843000 or email us for expert advice on selling your home in Virginia Water, Wentworth, or the surrounding Surrey areas. You can also request a free property valuation via our website here.
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