Landlords, take note — the new Autumn Budget (Nov 2025) brings some important changes
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From April 2027, rental income will be taxed at higher rates: landlords’ property-income tax jumps 2 percentage points, meaning 22 % (basic), 42 % (higher), and 47 % (additional).
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Good news: there is no new National Insurance on rental income — landlords avoid that extra burden for now.
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For landlords of high-value properties: from April 2028, homes valued over £2 million will face a new annual surcharge (so-called “mansion tax”).
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What didn’t change: no alterations to Stamp Duty Land Tax rates (for now), and Local Housing Allowance remains frozen — giving some stability to those considering buying or letting properties.
✅ What this means in practice (especially around Watford / South-East landlords):
While the tax hike will narrow profit margins for many landlords, the absence of a new NI charge and unchanged stamp duty provides some breathing room. For long-term investors, this might be a good time to review property portfolios, consider efficiencies, and re-assess yield expectations — particularly as housing demand in commuter zones like Watford continues to stay resilient.
At Harry Charles Estate Agents, we’re here to help you navigate these changes — whether you’re thinking of letting, buying, or reviewing your existing properties. If you like, we can also pull together a short guide for landlords in Watford showing “before vs after” the Budget
