What will the Budget mean for Burnley homeowners and landlords?
The Autumn Budget has landed, and its impact on Burnley’s property market is clearer than ever. Here’s what the changes mean for homeowners, landlords and tenants - and how Pendle Hill Properties is here to help.
The Chancellor's Autumn Budget has finally arrived after months of rumour, leaked ideas and speculation. Many households in Burnley had braced themselves for a sweeping new annual tax on homes above £500,000. That proposal has now been dropped, removing the biggest cloud hanging over the local market.
Instead, the Government has opted for a more targeted approach: a new high-value council tax surcharge affecting only properties above £2 million, along with future increases to property income tax for landlords.
At Pendle Hill Properties, we've analysed the Budget closely to help you understand what it means for homeowners, landlords and tenants in Burnley. With our deep knowledge of local values, rental performance and market trends, we aim to provide clear, practical guidance on the risks and opportunities these changes may create.
The End of the Feared £500,000 Annual Charge
For Burnley, the most significant news is what hasn't happened. The widely discussed idea of an annual tax on all homes above £500,000 has been ruled out.
This is particularly relevant locally because:
Burnley has 46,182 homes, and 585 of them are worth over £500,000
Many homeowners had delayed plans to move, extend or sell due to uncertainty. With this proposal scrapped, greater confidence should return to the market.
Stamp duty remains unchanged, meaning most Burnley buyers will continue to benefit from relatively low transaction costs. First-time buyers still enjoy reliefs on homes up to £300,000.
The New Mansion Tax for Homes Above £2 Million
From April 2028, a new high-value council tax surcharge will apply to homes worth more than £2 million.
The surcharge will be:
£2,500 per year for homes between £2m and £2.5m
£7,500 per year for homes above £5m
Nationally, this affects 0.5% of homes, mostly in London and the South East.
In Burnley, the impact is minimal:
Only 1 home in the entire Burnley area exceeds £2m (BB10/BB11/BB12)
For those affected, the cost will be unwelcome, though modest relative to existing stamp duty. Deferred payment options should also prevent financial hardship for older residents living in long-held homes.
Our view:
This is not a Burnley issue, and it will not have any meaningful effect on local activity or pricing. We will continue to monitor the national ripple effects, but locally, the market remains unchanged.
Higher Property Income Tax for Landlords
From April 2027, landlords will face a 2% rise across basic, higher and additional property income tax bands.
The new rates will be:
22%
42%
47%
This adds to a decade of changes affecting landlords, including:
• Reduced mortgage interest relief
• Stamp duty surcharges
• Smaller capital gains tax allowances
• New obligations under the Renters Rights Act
• Upcoming energy efficiency requirements
Burnley rental prices have risen sharply: £476 pcm in 2020 → £673 pcm today (41.4% increase)
However, higher rents must be understood in the context of wages. The average full-time wage in the Northwest has risen from £557.80 per week in 2020 to £734.20 a week. Tenant affordability remains the key driver of rental values, and responsible landlords will continue to balance fair rent increases with realistic expectations of what tenants can pay. For most landlords, rising gross income has helped offset rising costs, but it has not created excess profit. That is why any change to taxation must be approached with care.
What This Means for Burnley Tenants
Although this report focuses on owners and landlords, tenants will feel the consequences too.
The key risk is reduced supply if landlords exit the market due to tighter rules or lower net returns. Fewer available homes typically means higher rents.
A healthy property market needs enough private rental stock to meet local demand. Heavy-handed taxation can unintentionally push rents higher - a trend already visible across the UK.
Our commitment:
We continue to support fair, stable, well-managed tenancies. Pendle Hill Properties works closely with landlords to maintain safe, high-quality homes and with tenants to help them secure long-term, affordable rentals.
What This Means for Burnley Homeowners
For most Burnley residents, the Budget is less dramatic than many expected.
Key takeaways:
- No £500k annual charge - avoiding major disruption.
- The mansion tax affects virtually nobody locally.
- Revaluations of high-band homes (F, G, H) will take place, but this is a national exercise.
- Property forecasts suggest UK house prices may rise 1–2% annually over the next couple of years, broadly matching expected wage growth.
Our Final Thoughts
The Budget has nudged the property market rather than shaken it.
Homeowners now have stability and clearer expectations.
Landlords face further costs, but strong tenant demand remains a supportive factor.
Tenants will continue to feel pressure unless supply remains steady.
Burnley's property market has always moved in a measured, resilient and practical way. Stable rules, rising wages and realistic pricing will likely guide the market over the next few years.
