House Prices Dip Slightly Ahead of November Budget: What London Landlords Need to Know

Market Overview: A Subtle Shift Ahead of the Budget

The recently released e.surv Acadata House Price Index for October 2025 shows a modest 0.3% monthly decline in average house prices in England and Wales. This subtle dip reflects a market holding its breath ahead of the November Budget, with buyer and seller activity described as subdued but stable. Notably, wage increases have slightly improved affordability for first-time buyers, but broader market confidence remains cautious.

Why This Matters to Landlords

For London’s landlords, particularly those with higher-value properties, this development signals a period of uncertainty. The upcoming Budget is expected to address property taxation, potentially introducing changes that could affect:

• Stamp Duty Land Tax (SDLT) or equivalent levies on high-value purchases or sales
• Capital Gains Tax (CGT) implications for property disposals
• Possible adjustments in landlord-specific taxes or reliefs

While specific policy announcements are pending, the risk level is medium—enough to warrant proactive review but not immediate alarm.

Practical Implications Across Landlord Profiles

Single-Unit Landlords: If you own one or two properties, especially in London’s mid-market segments, the immediate impact might be limited. However, watch for changes in tax reliefs or compliance obligations that could affect your net returns.

HMO Landlords: House in Multiple Occupation (HMO) owners should consider how market stability and affordability shifts affect tenant demand and rent-setting strategies. Any tax changes on higher-value properties might indirectly influence your portfolio's capital value.

Portfolio Landlords: Those with larger portfolios must prepare for potentially significant tax adjustments. Reviewing your portfolio’s valuation and rental income streams in light of expected Budget announcements is essential. This helps identify properties that might become less financially viable under new tax regimes.

Accidental Landlords: If you’ve inherited or otherwise unintentionally own property, this is a good time to evaluate your position carefully. Budget-related tax changes could affect your holding costs or sale timing.

Next Steps: Preparing for the November Budget and Beyond

1. Monitor Official Government Communications: Ensure you follow HM Treasury updates immediately after the Budget to understand any property tax changes.

2. Review Your Portfolio Strategy: Use current market data and the latest house price trends to assess whether to hold, sell, or adjust rents. Consulting a property financial advisor can help clarify impacts tailored to your holdings.

3. Assess Rental Pricing: With affordability improving slightly for tenants, consider whether your rental prices remain competitive yet profitable. Avoid knee-jerk rent hikes; instead, base decisions on market evidence.

4. Schedule Compliance Audits: Potential changes in property taxation often come with new administrative requirements. Preparing your records and systems now will reduce last-minute stress.

5. Advise Tenants and Buyers Proactively: Transparent communication can help maintain good tenant relations and manage buyer expectations during this uncertain period.

How Rentals & Sales Can Support You

Our landlord intelligence team offers tailored portfolio reviews, compliance audits, and pricing strategy consultations designed to navigate the post-Budget landscape confidently. We help London landlords understand the practical impacts of market shifts and tax changes, ensuring your investments remain resilient.

This article provides general information and is not a substitute for professional tax or legal advice. Landlords should consult qualified advisors to understand how Budget changes specifically affect their circumstances.