November 26th, 2025
Chancellor Rachel Reeves has today unveiled the Autumn Budget – bringing a mix of updates that could affect how people buy or sell a home, remortgage, save, and plan financially for the future.
It’s a lot to take in, and it’s easy to feel overwhelmed by the number of announcements. But while some of the changes are significant, there are also areas of stability and predictability in the property and financial landscape. Understanding these updates can help you plan ahead with confidence – whether you’re looking to buy, sell, invest, or review your finances.
Mortgage rates may rise again – but gradually
According to the Office of Budget Responsibility (OBR) Mortgage rates are expected to climb over the coming years, from around 3.7% in 2024 to roughly 5% by 2029. Because most mortgages are fixed-rate, these changes will filter through slowly, giving homeowners and buyers time to plan. OBR November Economic and Fiscal outlook
However, in recent months mortgage rates have started to fall, questioning the OBR outlook for mortgage rate and the Bank of England has dropped the base rate to 4% and held it there, meaning lenders are following suit.
If you’re on a variable mortgage or nearing your remortgage date in the next year or two, this could be a good time to explore your options. Securing a competitive rate now might help you avoid future increases and give you peace of mind in a changing market.
Steady growth on house prices
Average house prices are projected to rise from about £260,000 in 2024 to just under £305,000 by 2030. Growth is expected to be around three percent this year, then average 2.5 percent per year from 2026 onwards.
Some tax changes on property and dividends, taking effect in 2027, may slightly slow this pace. But the market isn’t expected to experience sharp drops. For anyone looking to buy, sell, or invest, this steady growth provides a solid foundation for planning your next steps.
Housing supply: a short-term dip, then recovery
New-build housing is projected to fall over the next few years, reaching around 215,000 homes by 2026–27. Later in the decade, planned reforms to the planning system should boost supply, with completions rising to roughly 305,000 homes by 2029–30.
This short-term slowdown may create more competition for buyers, but the longer-term outlook suggests increased opportunities for those looking to invest, move, or plan strategically.
Slower pace predicted on property transactions
Transaction volumes are expected to rise more slowly than earlier forecasts, influenced by higher stamp duty, rising mortgage rates, and an ageing population moving less frequently.
For buyers and sellers who stay informed and plan ahead, a quieter market can actually be beneficial. It provides space to make thoughtful, strategic decisions rather than rushing, helping you navigate the property market with confidence.
Changes to ISAs, pensions, and wages
The Autumn Budget also includes key updates for personal finance. From April 2027, the annual Cash ISA allowance for those aged 65 and under will reduce from £20,000 to £12,000, though existing balances won’t be affected.
Looking further ahead, from April 2029, the exemption from National Insurance on salary-sacrificed pension contributions will be capped at £2,000 per year, meaning contributions above this level will incur NI charges, potentially making pension top-ups via salary sacrifice more costly.
On the positive side, the State Pension is set to rise by 4.8% from April 2026, while the National Minimum Wage for over-21s will increase from £12.21 to £12.71 per hour from April 2026, with larger rises for younger workers.
Together, these changes may impact saving, retirement planning, and earnings, so reviewing your finances and strategy now can help you plan effectively for the future.
The bigger picture
The Autumn Budget highlights both challenges and opportunities in the property and financial landscape. While rates and taxes are shifting, there are predictable trends to help guide your planning. Timing, preparation, and guidance from experts remain the most effective tools for navigating the years ahead.
If you’re unsure what these changes mean for your mortgage, home-buying plans, or financial future, book a free initial call with our Wealth team: