The government is increasing all rates of income tax applied to property income by two percentage points.

Delivering his first Autumn Budget today, Chancellor John Healey said from 2027 to 2028, the property basic rate will be 24%, the property higher rate will be 44%, and the property additional rate will be 49%.

The Budget in 2025 had already set property income tax rates at 22%, 42% and 47% from April 2027

These rates will apply across England, Wales and Northern Ireland.

Tony Hall, head of business development at Saffron for Intermediaries, commented: “Raising property income tax rates to 24%, 44% and 49% from April 2027 adds yet more pressure on landlords already navigating rising costs and substantial regulatory change.

“The government describes this as fair and proportionate, but landlords will judge it against the cost of providing a home. Maintenance, repairs, safety checks and property improvements all need funding. Taking more of the income leaves less available to reinvest. Many landlords are already rethinking how they operate, whether through limited companies, changes to their portfolios or investment in HMOs and multi-unit blocks. These decisions require careful advice and long-term planning. Repeated tax increases make that planning harder and risk discouraging further investment.

“If the government wants more good-quality homes to rent, it needs to give landlords reasons to provide them. Squeezing rental investment further risks leaving tenants with fewer choices and higher costs.”

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