Impact of the budget on the Lincolnshire property market for buyers, sellers and landlords
Wed 26 Nov 2025
As the Chancellor Rachel Reeves announced a whole host of changes to income and property taxes, cash ISAs and more in today’s (26 November 2025) Autumn budget, we reflect on the impact for the Lincolnshire property market. If you’re thinking of buying, selling or if you’re a landlord, tenant, property developer, landowner or farming family, what will the changes mean for you?
Impact on higher-value homes
Homes in England valued at £2 million or more will face a council tax surcharge or ‘Mansion Tax’ from April 2028. Four price bands will face these surcharges:
£2,500 for homes £2 million to £2.5 million
£3,500 for homes £2.5 million+ to £3.5 million
£5,000 for homes £3.5 million+ to £5 million
£7,500 for homes £5 million+
The Mansion Tax will affect homes in expensive areas, believed to be around 100,000 properties primarily in London and SE England.
Homes in the top council tax bands – F, G and H will require valuation for the first time since 1991.
Most properties in Lincolnshire will not be affected, but for those looking to sell over the £2 million bracket we don’t see a cause for concern, your buyers will still be attracted for the quality of life in Lincolnshire and its many benefits.
Impact on landlords
The Chancellor announced separate tax rates for property income today.
This means property income will have its own individual tax rates from April 2027:
Property basic rate will be 22%
Property higher rate at 42%
Property additional rate will be 47%
Finance cost relief will be provided at the separate property basic rate (22%).
Tax on dividend income will increase by 2% from April 2026:
Rising from 8.75% to 10.75%
Upper rate from 33.75% to 35.75%
Additional rate will remain unchanged at 39.35%
Savings income will also increase by 2% across all bands from April 2027:
Basic rates rising from 20% to 22%
Higher rate from 40% to 42%
Additional rate from 45% to 47%
It’s possible that these changes may see some landlords in the local area choose to exit the market by selling their rental properties, giving opportunities for first time buyers or others who want to enter buy to let market. Some landlords might see this as opportunity to add to their property portfolios and take advantage of our Fully Managed Property service.
Reporting and paying tax on property, savings and dividend income will remain the same and another benefit of our Full Management service means all your paperwork, including complex compliance is taken care of.
Cash ISA cut to £12,000 for under 65s
The amount that can be saved tax-free in a cash ISA (Individual Savings Account) will be reduced from £20,00 to £12,000 a year for the under 65s, from April 2027. The overall rate remains the same but the remaining £8,000 can only be used in an investment ISA. The Help to Save Scheme, which helps those on low incomes and on universal credit to put money aside, will be extended to 2028. This may impact anyone saving for a home deposit or renovations.
Update on Agricultural Inheritance Tax Relief
Today's budget clarified an important change to last year's controversial agricultural property reforms. The £1 million agricultural allowance can now be transferred between spouses, meaning a married farmer doesn't have to leave £1 million of agricultural assets to their children when they die, but can leave it to their spouse who can combine both allowances.
This means a surviving spouse or civil partner can now benefit from full 100% relief from inheritance tax for up to £2 million of combined agricultural and business assets.
For deaths occurring before 6 April 2026, the entire allowance will be assumed available for transfer to the surviving spouse or civil partner. While this offers some relief to farming families, it doesn't fundamentally change the October 2024 budget's restriction of full inheritance tax relief to the first £1 million of combined agricultural and business property, with only 50% relief available above this threshold from April 2026.
For our farming clients who might want to start the process of planning, Masons Rural offer a free 60-minute IHT consultation to optimise tax planning.
At Masons, we are here to help
If 2026 is your year to move, get in touch now. Now we know what is in the budget, we have clarity and buyer confidence will return. It’s a great time to prepare for the spring market - declutter, decorate, and be photo-ready so we can present your property at its absolute best.
Our Sales Team along won Gold at The British Property Awards and along with Lettings picked up Platinum Feefo for no end of 5-star reviews for the second consecutive year. Pure recognition that reflects our unwavering commitment to exceptional customer service in uncertain times.
Our Property Lettings and Management Team hosted their second Landlords' Legislation Conference earlier this month to help landlords learn how to navigate the Renters Rights Act or take on those arduous legal responsibilities for you.
Our Masons Rural Team are here to help farming and landowning clients with rural business advice, succession planning, inheritance tax, planning permission and much more.
For 175 years, we've been helping Louth property and landowners achieve their goals.
Please to get in touch if we can do the same for you.
Simon Williams
Managing Director