Budget delivers further tax blow
Summary
The Budget increases tax on rental income by a further two percentage points from April 2027, adding to the rise announced in the previous Budget and lifting property income tax rates to 24%, 44% and 49%. It also provides additional support for social and affordable housing, but makes no new concessions for private landlords or changes to the stamp duty surcharge on additional homes.
Why it matters
This is relevant to residential property surveyors because it may affect investor appetite, transaction volumes and the balance between private rental supply and affordable housing delivery. Surveyors advising landlords, investors or lenders may need to factor in the tax changes and the wider policy direction when assessing market conditions.
Key points
- Property income tax will rise by another 2 percentage points from April 2027.
- No change was announced to the stamp duty surcharge on additional residential properties.
- The Budget includes VAT relief for qualifying land sales to social housing providers.
- Government-backed support was announced for social and affordable housing and council borrowing.
- The article suggests the measures may discourage private landlord investment and reduce rental supply.
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