Following weeks of rumours, the Autumn Budget has landed and despite prior reservations, the impacts should be positive for the market. For Nottinghamshire, in particular our core areas of Southwell, Vale of Belvoir and Ravenshead, the outcome is greater stability and movement in what has been a stilted landscape.
The current landscape
Prior to the Budget, the uncertainty around capital gains tax on main residences has been causing a stall at the upper end of the market with vendors taking a ‘wait and see’ approach to protect their asset investment against any changes.
Some price brackets have held strong on homes below £750,000, which kept movement on the lower end of the chain supporting first-time buyers and family-home upsizers.
The uncertainty mainly impacted downsizers, however, these anticipated changes did not materialise in the Budget, which should see both clarity and confidence improve.
Looking into 2026, we have a stronger foundation and expect the Nottinghamshire market to pick up as people start to act on plans they’ve been considering for the past 12-18 months.
Standing firm on stamp duty
Updates to stamp duty are always highly anticipated and have a huge impact on the market, as we have seen happening in Nottinghamshire in the past. The lack of any stamp duty changes in this Budget is very important for our local market, which relies on healthy movement across all price brackets.
If stamp duty had been increased or redesigned, it could have derailed activity and created a pause while the impact filtered through different price brackets.
Instead, the absence of change means the market can move again as there is more certainty. Buyers in the £400,000 to £1.5 million range, which is a large portion of properties in Southwell, Ravenshead and surrounding areas, can commit with more confidence, knowing there is no sudden shift in transaction costs coming. Sellers can price and negotiate without the fear of a last-minute rule change.
The mansion tax
One new piece of legislation that has gained attention is being coined as ‘the mansion tax’. This is the High Value Council Tax Surcharge and targets homes valued at more than £2m in England based on target revaluation as of April 2026. It will be collected from April 2028 with a fee that ranges from £2,500 up to £7,500 per year for properties worth more than £5 million. It will be paid on top of the standard council tax.
While the impact of this change will be felt by some, it will be most significant in the South of England and London where property prices are higher. For Nottinghamshire very little will change.
Since the start of 2024, we estimate there have been less than 15 house sales over £2m across Nottinghamshire and the Vale of Belvoir. Southwell itself has seen only two notable sales at or around the two million mark in that same period. Most other high value homes have sat below the £1.5 million level.
Ravenshead shows a similar pattern, with the exception of a small number of Newstead Abbey properties. The Vale of Belvoir behaves slightly differently, where larger plots and ancillary land contribute significantly to value, but even in those cases a very limited number of homes are impacted.
Buyers at this price point tend to be led by lifestyle, land and location. Annual running costs are part of the calculation, but not the driving factor. Until we see exactly how the valuations are carried out, the true effect remains to be seen. If values are assessed in a similar fashion to current council tax bands, the impact in and around Nottinghamshire is likely to be more muted than national headlines suggest.
Landlords and the rental market
Similarly, on the lettings side we don’t expect a huge shake up in the market or many landlords looking to exit. The Budget announcement that from April 2027 the tax on ‘property income’, including rental income, savings and dividend-type income, will rise by 2% across basic, higher and additional rates.
Most landlords in Southwell, Ravenshead and the Vale of Belvoir are expected to hold their properties and will be supported by strong tenant demand.
Good quality homes in the right locations let quickly, and that underlying strength should cushion the impact of any gradual tax changes from 2027.
The property market in 2026
The primary drivers of demand in our market have not changed. Highly rated schools like Southwell Minster, accessibility via rail and road to London and Birmingham and high-quality rural living are all priorities for local people.
With mortgage rates remaining stable, as we head into 2026 many are considering long-term plans they’ve been considering for a while. With the fundamental drivers for upsizers, downsizers and first-time buyers remaining the same we expect to see lots of positive movement from local people and relocators.
The initial feeling is that these Budget changes should not have too much of a negative effect on our local market. If anything, the removal of some worst-case scenarios may unlock activity.
With renewed clarity for buyers, sellers, renters and landlords, 2026 should see the market moving and we’re looking forward to supporting the local community with their property goals.