With the Autumn Budget set to take place on the 26 November, speculation is increasing around the measures the Chancellor could announce. For intermediaries, understanding these potential changes is key to supporting your landlord clients through what could be a period of adjustment.
Autumn Budget 2025: What to expect
Economic context: With the economic and political background, it is likely that discussions within HM Treasury are focused on how the Government can raise additional tax revenue to support their wider policy ambitions. At the same time, they will be seeking to fulfil their aim of increasing economic growth and sharing the positive impacts of this growth across the country.
Property Tax changes: One area intermediaries with landlord clients will be particularly interested in is the potential for changes in property taxes. Several ideas have been floated in the media, in which the focus has been on changes to property taxes that would affect higher value properties and rental income.
Some form of “mansion tax”, either a separate levy on high value homes or a change to council tax for bands G and H properties, has been suggested as one option the Government could choose. This could potentially have wider impacts across the market if it influences landlord’s decisions around buying and selling particular homes.
These changes could reshape the market, so intermediaries should be ready to discuss implications with clients.
Income Tax and National Insurance: More directly impacting your clients would be possible changes to income tax or national insurance. One of the reported drivers of Government thinking has been the desire to equalise the treatment of different types of income for tax and national insurance purposes.
In its broadest sense this could involve the requirement to pay national insurance on rental income. Another proposal suggested that income tax could be increased at the same time as national insurance is reduced, potentially increasing the tax paid by groups that don’t pay national insurance.
Such changes could directly affect rental yields and mortgage affordability, making proactive planning essential.
Wider housing measures: The wider economic impact of the Budget will also be important to your landlord clients. Any changes to income tax, other taxes and decisions around benefits will impact on people’s personal finances and affect housing choices. Wider measures around the housing market should also be kept in mind including any financial measures to support green homes, particularly with enhanced Minimum Energy Efficiency Standards on the way and anything that supports first time buyers or supports the social housing sector.
What should Intermediaries do now?
- Stay informed: Monitor developments ahead of the 26 November
- Support proactively: Discuss potential tax and affordability impacts with clients
- Highlight opportunities: Explore funding for energy efficiency improvements
Until the Chancellor’s official announcement, all details remain speculative, but preparation now will help you guide clients confidently.