Despite the fears of many, there have been no increases to CGT on second homes, and the only increase in SDLT on residential property has been in respect of second homes. This will be a consideration for the holiday let investors, as well as those who continue to enjoy the Cotswolds as their rural escape. Even this rise has in fact been lower than many anticipated, up by 2% to 5%.

Whilst Capital Gains Tax is to be increased with the lower rate going up from 10% to 18% and the higher rate up from 20% to 24%, the rates on residential property will remain at 18% and 24%, much to many landlords’ relief.

The proposed changes, effective from April 2026, to Agricultural Property Relief and Business Property Relief will have a direct impact on farm and estate owners. They will undoubtedly affect future succession and IHT planning, as well as potentially reducing the attractiveness of buying bare land to investors, who are driven by the APR/BPR benefits that have existed to date. Further detail is required to enable a full assessment of the impact of these particular changes.

In view of the impact that will undoubtedly be felt by the private school sector, as fees will become subject to VAT from January 2025, the Cotswolds should expect to see demand for property increase in areas around the state schools. The Cotswolds have a number of particularly good state secondary schools, including The Cotswold School in Bourton-on-the-Water and Campden School at Chipping Campden.

We anticipate the uncertainty that has been stalking the property market in recent months, in the lead up to this budget, will now have been dispelled, and this should encourage buyers and sellers to reactivate and commit to their next move.

Overall, the Autumn Budget should have set a steady foundation, restoring confidence in the Cotswold property market, which is well-positioned to navigate current conditions. The area’s natural beauty, desirable communities, and high demand for rural living make it resilient against rapid market fluctuations. This confidence is key for both buyers considering a long-term investment and sellers hoping to make the most of strong interest in the region.

For those who value lifestyle and heritage, the Cotswolds remains a lovely area in which to make ones home whilst offering a worthy and stable investment.