Autumn Budget 2026: What It Means for Landlords and Property Investors

Our pre-Budget guide separated what was confirmed from what was rumour. This is the follow-up. It is based on the Budget speech, the Treasury's Budget summary and the Treasury's policy costings. The costings document is the most useful of the three for landlords. It lists every measure expected to move more than £10 million a year, so a stamp duty or capital gains tax rate change that does not appear there has not happened.

What the Budget changed for landlords

The further property income tax rise, the registration fee and the company distributions change are the items landlords are least likely to have planned for. Everything else either matches what was already announced or confirms that a rumoured change did not arrive.

Property income tax: the number to model

The first 2 point rise in property income tax rates, to 22%, 42% and 47%, was announced before this Budget and is already in the Finance Act 2026. This Budget adds a second 2 point rise from the same date, 6 April 2027, taking the rates to 24%, 44% and 49% in England, Wales and Northern Ireland, according to the Budget document and its rates and allowances annex. Savings income rates rise by 2 points too. The new rates still have to be legislated in Finance Bill 2026-27, so until then the rates in law for 2027-28 remain 22%, 42% and 47%. This is the measure that costs landlords the most. The Treasury's policy costings put it at £35 million in 2027-28 and £575 million in 2028-29, and they assume only a limited number of landlords will incorporate to avoid it.

The headline is 4 points on every pound of property income compared with today, but Section 24 softens it. Finance cost relief is a tax credit at the property basic rate, so under the Finance Act 2026 rules it follows that rate up instead of staying at 20%. Here is a higher-rate taxpayer with £24,000 of rent, £4,000 of running costs and £8,000 of mortgage interest:

Under the Budget plan the extra tax is £480 a year, not the £800 you get from 4 points on £20,000, because the credit gives back £320. That assumes finance cost relief keeps following the property basic rate, as it does under the Finance Act 2026 rules. For a basic-rate landlord with £10,000 of rental profit and no mortgage, the bill goes from £2,000 in 2026-27 to £2,200 at 22% and £2,400 at the planned 24%. The example assumes all the profit sits in the higher-rate band and no losses or other limits apply. Your own figure depends on your other income and how much mortgage interest you carry. Run it through the Section 24 tax calculator and the income tax calculator before drawing conclusions.

Stamp duty and capital gains tax: the uncertainty is over

If you held back a purchase or a sale waiting for the Budget, that reason has gone. Stamp duty rates are unchanged, so the stamp duty calculator gives the same answer today as it did yesterday. Our guide to stamp duty on buy-to-let covers the current bands. Residential capital gains tax stays at 18% and 24%, and the capital gains tax guide explains how the gain is worked out.

The one capital gains tax change is Business Asset Disposal Relief, which falls to a £500,000 lifetime limit from 6 April 2027. It is aimed at owners of trading businesses, so most buy-to-let landlords do not qualify. Gains above the new limit are taxed at the normal 18% or 24%.

New costs and rules to plan for

• Rental property registration. The Treasury says a £65 annual fee per property starts on 15 December 2026, and it estimates around 4.9 million private rental properties are in scope. A five-property portfolio would pay £325 a year. The costing assumes a phased rollout, so check when your registration window opens. Our Renters' Rights Act guide covers the wider reforms.
• Making Tax Digital. Landlords joining from April 2027 get a one-year easement on late-submission penalties for quarterly updates. The annual return deadline still applies, and quarterly updates must be filed before the final return. See Making Tax Digital for landlords.
• Company distributions. From April 2028 the government will tax more of the value shareholders take out of a company as dividends rather than capital gains. Check the final legislation before planning a company wind-up on the old assumptions, and take advice. Our look at the limited company buy-to-let trend sets out the wider picture.
• Overseas property. Automatic exchange of real estate information starts in January 2029, with first data shared in January 2030. UK taxpayers with foreign rental property should declare it now. See the non-resident rental tax comparison.
• Mansion tax. If you own a rental property worth £2 million or more in England, the deferral scheme and exemptions are now confirmed. See the mansion tax guide for landlords.

Interest rates and the economy

The Budget came with a new forecast from the Office for Budget Responsibility, and it is less comfortable than the March one:

• Bank Rate: the forecast assumes an average of 4.0% in 2026-27, up from 3.4% in March, and just over 4¼% by mid-2027.
• Inflation: an average of 3.3% in 2026-27, up from 2.1%, peaking at about 3¾% in early 2027 before returning to 2% in 2028.
• Growth: about 1¼% in 2026 and about 1% in 2027.
• 10-year gilt yield: an average of 5.0% in 2026-27, up from 4.6%.

These are forecasts built on market expectations, not Bank of England decisions. The practical point is that fixed mortgage pricing follows market rates, which we explain in why mortgage rates are rising while Bank Rate is held. Test every deal at a rate 1 to 2 points above today's with the BTL affordability calculator. The Budget also lifts the bank corporation tax surcharge from 3% to 6% for 15 months from January 2027. The documents do not say whether lenders will pass any of that cost on.

Buyers, builders and commercial landlords

• First-time buyers. The Your First Home equity loan scheme starts in April 2027 and is designed to help around 70,000 buyers. The Lifetime ISA withdrawal charge falls from 25% to 20% for first-time buyers purchasing above the £450,000 price cap from 29 October 2026, and a First Time Buyer ISA will replace the Lifetime ISA for new savers from April 2029. More support for buyers could help resale values at the entry level. Whether it lifts prices is a forecast, not a fact.
• Refurbishment and development. Smaller brownfield developments are exempt from Biodiversity Net Gain, and another £1.5 billion goes to social and affordable housing. For BRRR and refurb projects, nothing in the Budget changes the numbers directly.
• Commercial property. Small Business Rate Relief thresholds rise, rates for retail, hospitality and leisure are frozen in real terms for two years, and vape shops and adult gaming centres lose their reliefs from April 2027. Check the effect on any commercial tenant's covenant.
• Tenants' bills. The VAT cut on electricity runs to 1 July 2027, and households in council tax bands A to D get a £100 energy payment. This matters most if you include bills in the rent, as in many HMOs and short lets.

What to do now

1. Re-run your portfolio at 24%, 44% and 49%. Include the finance cost credit at the property basic rate, not just the headline rise, and compare the result with the 22%, 42% and 47% now in law.
2. Compare ownership structures with real numbers. The limited company vs personal calculator shows the trade-off. Incorporating can trigger stamp duty and capital gains tax, and the 2028 distributions rules add uncertainty, so take advice first.
3. Budget for the £65 registration fee on every rental property in England.
4. Get ready for Making Tax Digital. The penalty easement covers late quarterly updates only, so set up records now.
5. Stress test borrowing at 1 to 2 points above your current rate, especially if a fixed rate ends in the next 18 months.
6. Stop waiting for the Budget. If a purchase or sale already made sense, the tax backdrop is now known.

Frequently Asked Questions

Did stamp duty change in the Autumn Budget 2026?

No. The Budget documents contain no stamp duty measure, and the 5% higher rate for additional dwellings continues.

Did capital gains tax go up for landlords?

Not on residential property. The 18% and 24% rates are unchanged. The only capital gains tax change is the lower Business Asset Disposal Relief limit, which affects owners of trading businesses rather than most landlords.

Is the mansion tax threshold now £1.5 million?

No. The High Value Council Tax Surcharge still applies to English homes worth £2 million or more from April 2028. The Budget confirmed a deferral scheme, discounts and exemptions.

When will landlords pay more property income tax?

From 6 April 2027, so the first affected tax year is 2027-28. The Budget plans rates of 24%, 44% and 49% for individual landlords in England, Wales and Northern Ireland, with finance cost relief following the property basic rate. Until Finance Bill 2026-27 is passed, the rates in law for 2027-28 are 22%, 42% and 47%.

Do I need to register my rental property?

The Treasury says private rental properties in England will need to be registered, with a £65 annual fee per property from 15 December 2026. Check the government's guidance for when your registration window opens.

Should I move my properties into a limited company because of the Budget?

Not automatically. The Treasury expects only limited incorporation. Moving property into a company can trigger stamp duty and capital gains tax, and company profits face dividend tax and the new 2028 distributions rules. Model both routes and take advice.

Key Takeaways

• Stamp duty and residential capital gains tax rates did not change in the Autumn Budget 2026.
• The Budget plans property income tax rates of 24%, 44% and 49% from 6 April 2027, a further 2 points on the 22%, 42% and 47% already legislated, subject to Finance Bill 2026-27. Because finance cost relief follows the property basic rate, a higher-rate landlord in our example would pay £480 more than in 2026-27, not £800.
• New for landlords: a £65 annual fee per rental property in England from 15 December 2026 and new company distributions rules from April 2028.
• The OBR expects higher Bank Rate and inflation than in March, so stress test borrowing at 1 to 2 points above today's rate.
• The mansion tax threshold stays at £2 million.

This article is general information, not tax or financial advice. It is based on the Budget speech, the Treasury's Budget summary and policy costings published on 28 October 2026, and details may change as legislation is drafted. Updated on 30 October 2026 to reflect the further property income tax rise announced in the Budget. Speak to a qualified tax adviser before making decisions.