The November 2025 Autumn Budget brings a raft of changes that will affect both residential and commercial landlords—some immediately, others over the coming years. Below, you’ll find not just a summary of the measures, but practical steps and commercial insights to help you protect your income, manage risk, and plan for the future.
Table with 6 rows and 3 columns
Action | Why It Matters | When to Act |
|---|---|---|
Review ownership structure | Mitigate higher income/IHT | Before April 2028 |
Plan refinancing | Lower rates in 2026–27 | 2026–27 |
Upgrade EPC | Avoid future penalties, attract tenants | 2025–2027 |
Adjust rent strategy | Match tenant affordability | Annually |
Estate planning | Rising IHT risk | ASAP |
Diversify portfolio | Offset slow growth, capture commercial rebound | 2025–2027 |
Key Tax Changes and What to Do
1. Property Income Tax Rate Increase
What’s changing: Tax rates on property income rise by 2 percentage points.
Action: Review your ownership structure. If you’re a higher-rate taxpayer, consider whether holding property in a company could reduce your tax bill. Maximise allowable expenses and consider pension contributions to offset higher tax.
2. Personal Tax Threshold Freezes
What’s changing: Income tax thresholds are frozen from 2028-29, dragging more rental income into higher bands.
Action: Forecast your rental income for the next five years. If you’re close to a threshold, plan for the impact and explore ways to manage your taxable income, such as timing repairs or making pension contributions.
3. Capital Gains Tax (CGT) Reliefs Tightened
What’s changing: CGT reliefs on employee ownership trusts are restricted.
Action: If you hold property in a trust or are considering selling via a trust structure, review your plans with a view to the new rules. Consider timing disposals to minimise CGT.
4. Inheritance Tax (IHT) Pressures
What’s changing: IHT receipts are forecast to rise sharply as property values increase and thresholds remain frozen.
Action: Update your estate plan. Consider lifetime gifting, trusts, or insurance to reduce future IHT bills. Keep regular valuations of your portfolio.
Stamp Duty and Transaction Costs
What’s changing: Stamp duty thresholds changed in April 2025, with receipts set to rise.
Action: Factor higher transaction costs into your buy/sell decisions. If you’re planning to expand or reduce your portfolio, time transactions to avoid market spikes and consider the impact of higher stamp duty.
Housing Market and Portfolio Strategy
House Prices
Forecast: Modest growth (2–3% per year) means capital appreciation will be limited.
Action: Don’t rely solely on capital gains. Focus on yield and cash flow. Consider diversifying into commercial property, which is forecast for a sharper rebound in 2025.
Housing Supply
Forecast: No major new supply-side measures.
Action: Well-located, energy-efficient properties will remain in demand. Invest in upgrades to maintain competitiveness.
Financing and Interest Rates
Forecast: Bank Rate to fall modestly, then stabilise around 4%. Gilt yields (long-term borrowing costs) are rising.
Action: If you have mortgages maturing in the next 2–3 years, plan refinancing for 2026–27 when rates are expected to dip. Consider longer-term fixed rates to hedge against future increases. Avoid over-leveraging.
Commercial Landlord Insights
Commercial property prices: Expect a sharp rebound in 2025, a correction in 2026, then modest growth.
Business rates: Receipts are rising, so tenants may seek rent reductions.
Action: Offer flexible lease terms (e.g., stepped or turnover-based rents) to attract and retain tenants. Diversify your tenant mix to reduce risk.
Energy, Environmental, and Compliance
What’s changing: Environmental levies are rising, and EPC requirements remain in force.
Action: Budget for energy efficiency upgrades now. For commercial landlords, consider green lease clauses to share upgrade costs with tenants. Stay ahead of compliance to avoid future penalties and attract quality tenants.
Tenant Affordability and Welfare
What’s changing: Welfare reversals and benefit increases improve tenant affordability, but real income growth is weak.
Action: Screen tenants carefully for income stability. Be realistic about rent increases—smaller, regular rises may be more sustainable than large hikes. Consider incentives for longer tenancies to reduce voids.
Feeling uncertain about what the 2025 Budget means for you as a landlord? Caira can help you make sense of the changes.
With new tax rates, transaction costs, and compliance requirements, it’s natural to have questions or feel unsure about your options. Caira is available day or night to help you understand your obligations, explore strategies, and clarify legal terms—at your own pace.
You can upload your forecasts, tenancy agreements, or spreadsheets for more relevant responses. Whether you want to discuss tax planning, compliance, or simply need help interpreting official documents, Caira is here to support you with information drawn from over 10,000 UK legal and tax documents.
Chat about your goals or concerns and get clear, practical answers.
Upload documents, photos, or spreadsheets for more specific insights.
Try Caira free for 14 days—no credit card required. After that, it’s just £15/month.
If you’re looking for a way to feel more informed and less anxious about your landlord responsibilities, start a conversation with Caira in less than 30 seconds.
No credit card required
