Autumn Budget 2025 – Landlord Reactions
In somewhat good news for landlords, Chancellor Rachel Reeves decided against extending National Insurance to rental income in the Autumn Budget.
However, the Office for Budget Responsibility (OBR) warns that landlords will still be worse off under this Budget.
While National Insurance on rental income was not introduced, the Budget did raise tax rates on dividends, property, and savings income by 2 percentage points, which will increase the tax landlords pay on rental income and raise an estimated £500 million a year.
Successive eroding of private landlord returns will likely reduce the supply of rental property
In an embarrassing turn for the government, the OBR leaked key measures of the Budget, which it described as a “technical error,” while Ms Reeves blamed the OBR for the “serious error.”
The OBR document said: “The measures announced in this Budget reduce returns to private landlords, following various measures over the past 10 years that have also reduced returns.
“This successive eroding of private landlord returns will likely reduce the supply of rental property over the longer run, risking a steady, long-term rise in rents if demand outstrips supply.”
The OBR also mentioned changes to mortgage interest relief, the stamp duty land tax surcharge and capital gains tax allowances, as well as the introduction of the Renters’ Rights Act.
Rachel Reeves blames landlords
Industry experts have welcomed the Chancellor’s decision not to extend National Insurance on rental income.
Critics had warned that such a move could trigger property sell-offs and worsen the housing crisis for renters by pushing up rents.
While the Chancellor chose not to proceed with this change, the Autumn Budget still proved to be controversial for landlords.
Ms Reeves addressed fairness in the tax system, saying that a landlord with an income of £25,000 would pay nearly £1,200 less in tax than a tenant with the same salary because no National Insurance is charged on property, dividends, or savings income.
She said: “It’s not fair that the tax system treats different types of income so differently, and so I will increase the basic rate and higher rate on property, savings, and dividend income by 2 percentage points, and the additional rate on property and savings by 2 percentage points.”
Other measures in the Budget include:
The Freezing of personal tax thresholds for an additional three years from 2028-29
There will be a new High Value Council Tax surcharge of £2,500 on properties over £2m and a surcharge of £7,500 on properties valued over £5m
The two-child benefit cap will be abolished
The Conservatives’ ECO scheme surcharge on energy bills will be scrapped, saving the average household £150 per annum.
The OBR’s inflation forecast has reduced next year’s predicted inflation by 0.4% due to the affordability measures introduced in this Budget. This should increase pressure on the Bank of England to further bring down the Bank Base Rate.
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Industry reactions to the "Mansion Tax"
Member Since December 2024 - Comments: 3
5:54 PM, 26th November 2025, About 5 months ago
Having sold the last of my 45 properties in April, over an 8 year period, I wonder why so many still linger in this game?
A game it is that’s loaded in everyone else’s favour. I was ready for retiring anyway – conveniently. I handled my exit taxes cleverly and am now awash with more cash than I could ever hope to spend in two lives
However, the BEST part is – I’m out of renting properties.
Can i respectfully ask – why do others remain? It’s a fools game isn’t it?
Member Since May 2018 - Comments: 45
6:12 PM, 26th November 2025, About 5 months ago
https://www.facebook.com/share/v/1C188Uytqh/
Member Since October 2013 - Comments: 1642 - Articles: 3
7:13 PM, 26th November 2025, About 5 months ago
Reply to the comment left by Ryan Stevens at 26/11/2025 – 17:06
I hope you’re wrong but I fear you aren’t.
Member Since December 2022 - Comments: 30
7:35 PM, 26th November 2025, About 5 months ago
This is all part of the WEF Agenda 2030 ‘you will own nothing and be happy’ plan. All political parties follow the same agenda but approach it from different directions, according to their puppeteers. They want everyone to ultimately rely on the state so they can push the social credit system (and the fake climate con). This way they will have more control and enslave us further. Using cash will stall this and do everything in your power to avoid the dreadful digital ID.
Member Since April 2018 - Comments: 374
7:40 PM, 26th November 2025, About 5 months ago
Reply to the comment left by Mark Ripley at 26/11/2025 – 17:54
A falling sales market, no buyer interest and fixed term mortgage penalties, that’s why.
Member Since April 2018 - Comments: 374
7:46 PM, 26th November 2025, About 5 months ago
Reply to the comment left by NewYorkie at 26/11/2025 – 16:23
I agree , I did bring mine up to market value before.I shall wait and see how the market in my area reacts to the budget.However if a good tenant, who has been with me for years leaves I then have the increased risk of an unknown tenant.
Member Since April 2018 - Comments: 374
7:51 PM, 26th November 2025, About 5 months ago
Reply to the comment left by Ryan Stevens at 26/11/2025 – 17:06
Then you are shot of them and can get new tenants at market rent
Member Since April 2018 - Comments: 374
7:52 PM, 26th November 2025, About 5 months ago
Then you are shot of them and can get new tenants at market rent
Member Since April 2018 - Comments: 374
7:58 PM, 26th November 2025, About 5 months ago
I have also been told by a letting agent I will need to supply all my tenants with a copy of the RRB in May, or I assume a court may throw out any eviction etc.Funny how we have to wipe their ar.es but we have to dig around for information to comply with legislation.Perhaps the new landlord registration portal will tell us exactly what we need to know, but probably not.
Member Since July 2013 - Comments: 463
9:08 PM, 26th November 2025, About 5 months ago
Striking how Reeves had all the verbiage at the start of her speech about encouraging investment in the UK, but then hits private investors in shares, property and savings with an extra 2% income tax.
And she had almost nothing to say about “growth”. No doubt I’m over-simplifying, but the Government still seems to be about nothing more than infrastructure spending, throwing money at benefit claimants, and compressing wage differentials: minimum wage earners and young people get fat pay rises irrespective of their actual achievement, productivity or contributions to profits, while ordinary working people see compressed earnings and smaller and smaller differences between what they and the lower-paid receive.
In my line of employed work, the hours are typically 42.5 hours a week. Someone on minimum wage will now get £28K from Day One – for what? Meanwhile workers on 10, 20 or 30 years experience get no increases, just more and more tax and prices rises from what seems every direction.