In England, there will be an increase in council tax for homes valued above £2m, with four new bands to be introduced for higher-value properties, from April 2028.

In addition in England, from April 2027, tax on income from rental property, set to be levied at 22% for the basic rate, with bands of 42% and 47% for higher and additional rate bands.

Galbraith operates from offices across Scotland and the north of England, specialising in predominantly rural and lifestyle property, including farms and smallholdings.

Sam Gibson, a Partner with Galbraith based in Hexham, said:

"This budget is a missed opportunity to boost the property sector. A properly functioning housing market provides an impetus for growth and supports labour mobility - enabling people to relocate for work as well as retirement and second homes, which re-distributes currency around the country. Policy interventions and taxes which hinder people from moving house are a drag on the economy and distort the housing market, ultimately preventing the flow of property down the price bands and restricting available property for first time buyers. A restricted housing market has negative consequences for everyone.”

UK house sales have fallen from a peak of 183,609 per month in June 2021 to 46,774 in January 2025, lower than the 65,834 sales recorded in January 2005, some 20 years ago.

Average house price growth has also fallen from 6.9% in January 2021 to 3.9% per cent in January 2025, according to data from the Land Registry.

David Corrie, Head of Estate Agency for Galbraith, commented:

“Successive governments have perhaps taken the view that the housing market is constantly thriving and therefore an ideal target for taxation. Accounting for inflation and regional variations, average house price growth has been muted in the past 10 or 20 years, something which has not necessarily been taken on board by politicians. Property in the north of England and Scotland offers excellent value for money compared with other parts of the UK.

“Imposing additional taxes will constrain the market and hinder economic growth, particularly as the current tax system, with Stamp Duty Land Tax (SDLT) in England and Land & Buildings Transaction Tax (LBTT) in Scotland, already adds significant cost to the process of moving house.

“The additional tax burden to be imposed on income from rental property will also have a damaging impact in England. We’ve seen in Scotland the unintended consequences of the regulations on the rental sector in recent years. Supply has fallen dramatically and average rents have increased as a result. This is the opposite of the policy intention.

“It would be far better to reduce property taxes across the whole of the UK, to ensure that property sales and lets can meet demand, and to provide a stimulus for growth.”