With the Autumn Budget approaching, landlords are watching for potential tax changes that could affect rental profits, property investment and the future of the private rented sector. Here's what we know so far.
The UK property sector is calling on the government to avoid adding further financial pressure on landlords as the Autumn Budget approaches. Industry bodies warn that higher costs and ongoing regulatory changes could influence investment decisions and the supply of rental homes.
In an article published by Property118 on 21 October 2026, industry experts raised concerns about potential Capital Gains Tax changes, property-related taxes and the cumulative cost of operating a rental property.
But which changes are already confirmed, and which remain uncertain?
What Tax Changes Are Landlords Concerned About?
1. Capital Gains Tax
Capital Gains Tax (CGT) may apply when a landlord sells a property and makes a taxable profit.
Ahead of the Budget, speculation about increasing CGT rates has raised concerns among property investors. Property118 reports that industry representatives fear higher rates could affect landlords' decisions about when to sell or whether to invest in additional properties.
However, a potential increase should not be treated as confirmed. Landlords considering selling should review their individual tax position with a qualified adviser.
2. Higher Tax on Rental Income
One change is already confirmed. From April 2027, separate income tax rates for property income in England, Wales and Northern Ireland are scheduled to be:
- 22% for the basic rate.
- 42% for the higher rate.
- 47% for the additional rate.
These changes were announced in the 2025 Budget. They will affect eligible individuals receiving rental income, with the actual impact depending on their circumstances and applicable reliefs.
3. Stamp Duty and Other Property Costs
The National Residential Landlords Association (NRLA) is calling for the government to reverse the increase in the Stamp Duty Land Tax surcharge on additional properties, which rose from 3% to 5% in October 2024.
Industry representatives argue that acquisition costs can discourage investment in rental housing. There are also concerns about operating costs, regulation and the possibility of additional property-related taxes.
These calls for changes are industry proposals, not confirmed Budget decisions.
Why Does This Matter for the Rental Market?
Landlords need to consider the combined effect of taxes, mortgage costs, maintenance and compliance when assessing a property's profitability.
Industry experts quoted by Property118 warn that additional financial pressure could encourage some landlords to sell or reconsider future investment. If rental homes leave the private rented sector without sufficient replacement, this could affect the choice available to tenants.
The eventual impact will depend on the measures adopted, market conditions and individual landlords' decisions.
What Should Landlords Do Before the Budget?
While further announcements remain uncertain, landlords can take practical steps to understand their position:
- Review your finances: Track rental income, expenses and mortgage costs.
- Understand upcoming tax changes: Check how the confirmed April 2027 property-income tax rates may affect you.
- Keep records organised: Maintain accessible financial and property documents.
- Seek professional advice: Speak to a qualified tax adviser before making significant investment or disposal decisions.
Keep Your Property Information Organised with Propell
Managing a rental property involves more than collecting rent. Keeping track of property information, documents, income and compliance dates can help landlords stay organised as costs and regulations change.
Propell brings property information and documents together in one place, with features including rent tracking and reminders for relevant compliance dates.
Explore Propell: https://propell.co.uk/
Frequently Asked Questions
Are landlords facing a Capital Gains Tax increase in the 2026 Autumn Budget?
There has been speculation about a potential increase, but speculation is not confirmation. Landlords should check official Budget announcements before making decisions based on a possible change.
When will the new property-income tax rates take effect?
The separate rates of 22%, 42% and 47% are scheduled to apply from April 2027 in England, Wales and Northern Ireland. Individual tax liabilities will depend on the applicable rules and circumstances.
What can landlords do to prepare for the Budget?
Review rental income and costs, understand confirmed tax changes, keep financial records organised and seek professional advice before making major property decisions.
