How the Autumn Budget 2025 Could Affect Buyers, Sellers, Landlords and Tenants in Solihull
This blog breaks down what these measures could mean for the Solihull area, an affluent West Midlands market known for its outstanding schools, excellent connectivity, and high-spec housing stock.
As the Autumn Budget 2025 approaches on 26 November, property owners and movers in Solihull and its surrounding areas, including Knowle, Dorridge, Shirley, and Olton should be paying close attention. The proposed introduction of a new annual property tax on homes valued above £500,000, combined with potential Stamp Duty Land Tax (SDLT) reforms and Capital Gains Tax (CGT) changes, could significantly impact decisions for buyers, sellers, landlords, and tenants.
National Market Overview (Autumn 2025)
A quick snapshot of the UK-wide market context influencing Solihull’s housing landscape:
· Bank Rate: Held steady at 4.0%, maintaining relative mortgage affordability
· Mortgage approvals: Peaked at 65,944 in September - highest figure of the year
· House price growth:
o Halifax: 1.9% (YoY)
o HM Land Registry: 3.0% (YoY)
· Proposed Budget measures:
o Annual property tax on homes over £500,000 (0.54%–0.81%)
o Potential SDLT reform, likely aimed at reshuffling thresholds
o Possible CGT tightening for second homes and investment sales
Solihull’s premium homes and commuter desirability place it firmly in the crosshairs of these changes.
Solihull Area Market Snapshot
· Average property price (Solihull borough): ~£480,000
· Detached homes: £650,000–£1.1 million
· Flats: £215,000–£325,000
· 3-bed semis: £425,000–£575,000
· Average rent: ~£1,750 pcm
· Rental yield: ~3.8–4.5%
Hotspots over £500k: Knowle, Dorridge, parts of Solihull town centre and some premium zones in Shirley and Monkspath.
Buyers in Solihull and Surrounding Areas: Time to Budget for Annual Tax?
Will I be impacted by the new property tax?
If you're purchasing in Knowle, Dorridge or central Solihull, almost certainly yes. Many detached and semi-detached homes exceed the £500,000 mark. Annual tax liability could range from £2,754 to £10,800+.
Advice for buyers:
· Flats and some homes in Shirley, Olton or Cheswick Green remain below the threshold.
· Weigh long-term tax costs into your affordability calculations.
· Consider buying before SDLT changes, especially if close to a pricing band.
· Seek out value pockets just outside the premium zones.
Sellers: Beat the Tax Psychology Before It Bites
Could this new tax lower buyer enthusiasm?
Potentially, yes particularly for homes priced between £500,000–£650,000. Buyers may start negotiating harder or hold off entirely.
Tips for sellers:
· Consider pricing at £495,000–£499,995 to maximise demand.
· Highlight proximity to strong schools (e.g., Tudor Grange, Arden), transport links, and EPC upgrades.
· Market homes now, before Budget anxieties become real-time price objections.
· If selling a second home, assess potential CGT shifts and act promptly.
Landlords in Solihull: Rental Demand Strong—But Yields May Tighten
While rental demand remains solid, particularly from professionals and families, the annual tax will eat into returns for landlords holding stock over £500,000.
Landlord strategy:
· Futureproof by focusing on properties under the threshold, especially well-located flats or newer townhouses.
· Reassess whether your higher-end lets still meet ROI goals.
· Plan any disposals strategically before April 2026 in case of CGT reforms.
· Maintain tenant satisfaction to minimise voids and defend yields.
Tenants: Budget Awareness and Renewal Timing
Will rents go up after the Budget?
Possibly but selectively. Higher-value rentals (especially detached homes in Knowle or Dorridge) may see increases if landlords pass on tax costs.
Tenant guidance:
· Renew before Q1 2026 to lock in your current rate.
· Consider downsizing or flat sharing if your rental sits near or over the threshold.
· Explore rental opportunities in Cheswick Green, Dickens Heath or Elmdon for value.
Conclusion: Budget-Proofing Your Next Property Decision
For property owners and movers in Solihull, Knowle, Dorridge, Shirley and surrounding areas, the Autumn Budget 2025 introduces new layers of consideration.
Buyers should be mindful of annual tax costs and act before SDLT reforms land. Sellers have a prime opportunity to market just ahead of any demand dips. Landlords must review whether higher-end stock still performs, and tenants can secure better terms by planning ahead.
At Avocado Property, our local expertise and honest guidance make navigating these changes straightforward.
Want to know exactly how the Autumn Budget will affect your postcode, property type, or move? Book a free local strategy session with our team today.