The Autumn Budget included several announcements relevant to landlords, property investors and the wider housing market. The most significant change for many landlords is an increase in the tax rates applied to property income from April 2027. There were also measures aimed at helping first-time buyers and easing some of the financial pressure on households. Here are the key points.
Property income tax will rise from April 2027
From 6 April 2027, the rates of Income Tax applied to property income will be:
- 24% at the basic rate
- 44% at the higher rate
- 49% at the additional rate
The new rates will apply to property income in England, Wales and Northern Ireland. For landlords who own rental properties personally, this is an important change to factor into future planning. The precise impact will depend on individual income, ownership arrangements and other circumstances, so it is sensible to seek independent tax advice before making any changes. The announcement does not, on its own, mean that every landlord needs to restructure their portfolio. It does mean that landlords should understand how the new rates could affect their net rental income from April 2027.
Further support for first-time buyers
The Budget also included measures intended to help more people move into home ownership, including the new Your First Home equity loan scheme and plans for a new First Time Buyer ISA. Further details and eligibility rules will determine how widely these schemes are used. Some long-term tenants may ultimately be able to move into home ownership as a result of increased support. However, it is too early to assess what effect this might have on local rental demand, and landlords should avoid making decisions based on that announcement alone.
Support with household costs
A number of measures were also announced to help with household costs. These include a £100 Household Energy Payment for eligible households in Council Tax bands A to D in England from January 2027. The government has also committed to removing standing charges from household gas bills in 2027, or as soon as possible afterwards. These measures are aimed principally at households rather than landlords. However, anything that supports tenants’ financial resilience may be relevant to the wider rental market.
What should landlords do now?
The property income tax change does not take effect until April 2027, but landlords may wish to begin considering it as part of their wider review of property performance. This means looking beyond headline rent and considering:
- net rental income after tax
- mortgage and financing costs
- service charges and maintenance
- planned expenditure
- potential void periods, and
- the longer-term role of each property within the portfolio.
Landlords should seek appropriate tax or financial advice before changing ownership arrangements, financing or investment plans. At FleetMilne, we can help landlords understand current rental values, local demand and how their property is performing in the Birmingham market. Where specialist mortgage or tax advice is required, we can also help direct landlords to appropriately qualified advisers. If you would like to review your property’s rental performance or discuss your plans, please speak to the FleetMilne team.
Disclaimer
This article is for general information only and does not constitute tax, financial, investment or mortgage advice. Tax treatment depends on individual circumstances and may change. Landlords should seek advice from an appropriately qualified professional before making financial or ownership decisions.
Sources: HM Revenue & Customs, Budget 2026: Overview of tax legislation and rates, 28 October 2026; HM Treasury, Budget 2026; Department for Energy Security and Net Zero, What the Autumn Budget 2026 means for your energy bills; Propertymark, Budget 2026 raises landlord taxes as new support targets first-time buyers.
