The Key Changes Landlords Need to Know: Autumn Budget 2025 

The Autumn Budget 2025 brings major changes for landlords and we’re here to inform you of what’s to come. 

From April 2027, rental income tax will rise by 2%, basic rate moving from 20% > 22%, higher rate from 40% > 42% and additional rate from 45% > 47%, meaning higher costs for all landlords. However, the income tax thresholds remain frozen until 2031, which may mean with the rise of rental income, this could place more pressure on falling into higher tax bands. 

A new mansion tax has been created, from April 2028, if you own a property valued over £2 million, landlords should expect a new council tax surcharge between £2,500 to £7,500 annually. For landlords with high valued properties this could heavily influence investment strategies going forward. 

Regulations are tightening for landlords with Section 21s, landlords having to register on a new Private Rented Sector database, rent increases being limited to once per year, and compliance with the Decent Homes Standard, meaning that we need to be more vigilant as failing to comply with these new regulations, means fines of up to £7000 could be enforceable. 

With the governments heavy focus on increasing compliance, another area of focus is to ensure energy efficiency, from 2028 all new tenancies must meet an EPC rating C and by 2030 all rentals must comply with this. Luckily, any of these expenses incurred to upgrade the property can all be offset against your tax! 

Overall, landlords face higher taxes, stricter tenancy rules, and costly energy upgrades. However, let’s start early! Get in touch with us at PJCO, we want to help you, start budgeting now, review your portfolio, and explore grants or tax efficient strategies to stay profitable.  

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Please get in touch on 01273 441187 or book a discovery call with one of our expert accountants. 
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