BUDGET 2025: WHAT IT MEANS FOR POTTERS BAR

Thursday November 27, 2025

As one of the longest-serving estate agents in Potters Bar, Auckland Estates have seen many Budgets come and go. The 2025 Budget, delivered this week by the Chancellor, brings some notable tax changes that will shape parts of the property market over the next few years. While headlines focused on a new “mansion tax” and increases to landlord income rates, the reality for most local homeowners and investors is far less dramatic.

Our view is simple: for the vast majority of Potters Bar, Hertfordshire, and Greater London residents, this Budget represents stability rather than shock, with opportunities ahead for those who understand the landscape.

Key Housing and Tax Announcements

  1. No Change to Stamp Duty (SDLT)
    Despite heavy speculation, the Chancellor made no changes to Stamp Duty thresholds or rates. This means buyers and sellers can plan ahead with confidence and no new distortions will affect mid-range or family home transactions.
  2. “Mansion Tax” Council Charge from 2028
    A new annual Council Tax surcharge will apply to properties valued over £2 million, set between £2,500 and £7,500 depending on property value. This measure will primarily affect higher-end properties across central London and prime commuter towns. For Potters Bar very few homes fall into this category.
    With most three-bedroom homes priced around £500,000 to £600,000 and four-bedroom houses between £600,000 and £800,000, this surcharge will rarely affect our local market.
  3. Landlord Income Tax Increase (from April 2027)
    Tax on rental profits will increase by two percentage points across all bands.
  • Basic rate landlords will pay 22% (up from 20%)
  • Higher rate landlords will pay 42% (up from 40%)
  • Additional rate landlords will pay 47% (up from 45%)

While this does add cost to landlords, strong local demand and low rental supply in Potters Bar and surrounding areas mean yields should remain resilient. Rents are likely to continue rising moderately as the market adjusts.

  1. Capital Gains Tax (CGT) and Inheritance Tax (IHT)
    Both remain unchanged. Main residence relief continues to apply, and there are no new restrictions on transferring or gifting property. For homeowners and families planning long-term moves, downsizing, or succession planning, this provides certainty and stability.
  2. Renters Reform and the End of Section 21
    The long-awaited Renters Reform Act (now called the Renters’ Rights Act) is due to come into force fully by May 2026. This will remove “no-fault” Section 21 evictions, introduce lifetime tenancy rules, and strengthen property standards.
    Although this will mean more administration for landlords, it should also lead to better long-term tenancies and reduce turnover in quality, well-managed rental homes.

The Local Market Outlook – Potters Bar and Hertfordshire

Potters Bar has always been one of Hertfordshire’s most stable and family-friendly housing markets. Excellent commuter links, outstanding schools, and a strong community spirit continue to drive steady demand year after year.

With direct trains to London King’s Cross in around 16 minutes, and easy road access via the M25 and A1(M), the town remains highly desirable for professionals and families relocating from London who want more space and greenery without sacrificing convenience.

The town itself continues to evolve, with new restaurants, cafés, and independent shops opening throughout the High Street and The Broadway, and large open fields and parks providing a balance of nature and accessibility rarely found this close to London.

Education – A Major Draw for Buyers

Potters Bar is home to Dame Alice Owen’s School, one of the highest-ranked state schools in the entire country, consistently rated Outstanding and attracting families from across North London and Hertfordshire.
Nearby Wroxham School is also rated Outstanding by Ofsted, reinforcing the area’s reputation for first-class education.
These schools play a significant role in sustaining local property values, with family homes in catchment areas consistently commanding strong interest and achieving premium prices.

Hertfordshire and North London – A Balanced Outlook

Across Hertfordshire and outer North London, markets are likely to see a gentle balancing rather than any major correction.
The OBR’s latest data points to slower growth in higher-value areas, but continued steady demand for mid-market homes in commuter zones. This suits our region perfectly.

For sellers, pricing correctly and presenting well-maintained properties will remain the key to attracting motivated buyers. For landlords, focusing on compliance, tenant relationships, and property condition will help offset higher taxes and protect yields.

For Investors and Landlords

The 2025 Budget highlights the government’s ongoing focus on larger landlords and high-value properties, but smaller-scale local investors remain well-positioned.

Potters Bar’s rental market remains strong, with a consistent flow of tenants seeking family homes near schools and transport.
The combination of limited new supply, high employment, and ongoing demand means void periods are minimal, and good tenants stay longer.

Our advice for landlords is clear:

  • Review your portfolio and mortgage terms ahead of the 2027 tax rise.
  • Stay ahead of compliance under the Renters’ Rights Act.
  • Focus on long-term value – well-maintained, energy-efficient homes will continue to attract the best tenants.

For Homeowners and Sellers

There is no reason to expect instability. In fact, 2025 could see an increase in serious buyers who were waiting for clarity post-Budget. Mortgage rates have eased slightly compared with early 2024 levels, and lenders are showing more flexibility for well-qualified borrowers.

For Potters Bar sellers, this is a positive environment. Demand remains strong for family homes, particularly within the catchments of Dame Alice Owen’s, Wroxham, and Mount Grace schools.

Auckland Estates are uniquely placed to help. As the longest-serving agent in Potters Bar and the largest local sales team, our knowledge, experience and network give our clients an edge in securing the right buyer at the best price.

We do not rely on gimmicks or staging – our focus is on strategy, presentation, and negotiation, backed by decades of market insight and the most extensive buyer database in the area.

Final Thoughts – Realism, Confidence and Opportunity

The 2025 Budget brings some structural changes for higher-end owners and landlords, but for Potters Bar and most of Hertfordshire, the outlook remains positive and steady.
Our town continues to offer exceptional value compared with London, superb schools, fast transport, open green space and a thriving community.

For homeowners, it remains a great time to move.
For investors, a chance to plan strategically.
For first-time buyers, an opportunity to secure a foothold in one of the most desirable commuter towns in the South East.

Auckland Estates will continue to provide trusted advice and practical guidance through every market cycle – just as we have done since 1983.