The Chancellor sat down, the WhatsApp groups lit up, and your tax rate went up again. Here's the calm version, plus what else landed.
The lead: rental income tax goes to 24%, 44% and 49%
Chancellor John Healey has raised tax on property income by a further two percentage points from 6 April 2027, on top of the two points announced last year. From that date the rates on your rental profit are 24% basic, 44% higher and 49% additional. Nothing changes before April.
The tax credit for your mortgage interest stays tied to the basic rate, so it rises with it, according to Tax Policy Associates. The Budget's tax overview lists no change to capital gains tax rates on residential property. The Office for Budget Responsibility calls the package "a material reduction in returns to private landlords" and thinks higher rents in the long run are more likely than not, as reported by Landlord Today.
Take last year's rental profit and apply the new rates to see your own bill. Then ask your accountant what it means for you before you restructure anything or touch the rent because of a headline.
Landlords are shrinking, and blaming the Act
Goodlord's full State of the Lettings Industry report is out, covering 3,031 agents, landlords and tenants. 27% of landlords are cutting their holdings or did so in the past year, and 65% of those name the Renters' Rights Act as the main reason. 57% say the move away from fixed-term tenancies has been a negative change, and 42% expect the landlord database to hurt, as reported by Letting Agent Today.
Agents say they feel it too: 59% report that limits on rent in advance have hurt, and 57% expect more unexpected departures and empty homes. That's a lot of nervous people holding your keys.
Ask your agent how they plan to keep a good tenant in place, and check your agreement for what you pay if a tenancy ends early or the home sits empty.
A £29 lettings service is the fastest-growing agent
Online service Hello Neighbour lets you list for £29, including Rightmove, plus £30 for deposit and compliance handling, a tenancy agreement and collection of the first month's rent. Its turnover rose 253% between 2023 and 2025, and it ranked 94th in the UK Fast Growth Index Top 200, as reported by Letting Agent Today. It operates only in London and some large cities.
A full agent does more than list and sign: viewings, referencing, repairs and the call at 9pm when something breaks. But those prices give you a benchmark. Ask your agent to itemise exactly what your tenant-find fee covers.
Quick hits
- Making Tax Digital: no late-submission penalty points for 2027-28 quarterly updates for those joining in April 2027, but the updates are still required, per the Budget tax overview. If you're already in the system, Propertymark notes your second quarterly update is due 7 November.
- Your rental data: the government will consult on expanding third-party reporting of property income data. It doesn't say who would report. Keep your rent records tidy, and ask your agent what they already send to HMRC.
- Energy upgrades: Warm Homes Plan capital grants are cut by £1bn, while Boiler Upgrade Scheme funding holds at £400m in 2027-28, per Propertymark's Budget summary. If you're planning EPC work, don't count on a grant.
- Housing support: the Chancellor did not reverse the freeze on Local Housing Allowance, according to the NRLA. If you let to a tenant on housing support, check how much of the rent their allowance covers before you agree a rise.
Number of the day: 4 points
That's the total rise in tax rates on rental income from April 2027, counting last year's two points and yesterday's two, as reported by Landlord Today. On every £10,000 of taxable rental profit, that's £400 more a year. Work out your own number before anyone else does it for you.