The Autumn Budget 2026 has brought further changes for the private rented sector, with landlords facing another increase in tax on rental income from April 2027.

So, what has changed, how could it affect your rental income, and what should you be doing now to protect your investment?

Income Tax on Rental Profits Is Increasing

The biggest announcement for individual landlords is a further increase in the tax rates applied to property income from 6 April 2027.

The Government had already announced plans to increase property income tax rates by two percentage points. The Autumn Budget confirmed a further two-percentage-point increase, taking the total increase to four percentage points compared with the previously applicable rates.

The new rates for individual landlords in England will be:

These changes apply to taxable property income, rather than simply the total rent received. Your individual circumstances, allowable expenses and other income will influence how much tax you pay.

What should landlords do?

With the changes due to take effect in April 2027, now is a sensible time to review your rental income, expenditure and projected returns.

We recommend speaking to a qualified accountant or tax adviser to understand how the new rates could affect your individual circumstances and whether any changes to your financial planning are appropriate.

Lower Energy Costs During Void Periods

When a tenant moves out, landlords usually become responsible for electricity and gas charges until a new tenancy begins. Even when a property is empty and very little energy is being used, standing charges can continue to accumulate.

The Budget includes two measures that could help reduce these costs slightly.

Zero-rated VAT on domestic electricity extended

The Government has extended the temporary 0% VAT rate on qualifying domestic electricity supplies until July 2027.  For landlords paying electricity bills during a void period, this could provide a small saving on eligible electricity charges.

Gas standing charges to be abolished

The Government has also asked energy regulator Ofgem to abolish standing charges on domestic gas bills, aiming for implementation by the end of 2027 or as soon as possible afterwards.   Standing charges are fixed daily costs that apply regardless of how much gas is used, so currently Landlords are paying for a gas supply even when a property is empty and the heating is switched off.  However, the costs currently covered by gas standing charges will be transferred into the unit price of gas. This means the overall saving will depend on how much gas is used and the tariff that applies.

HMRC Plans to Widen Rental Income Reporting by Letting Agents

Another important development for landlords is HMRC’s new consultation on improving the reporting of property income.

Published on 28 October 2026, the consultation considers proposals to change the information that letting agents and tenancy deposit scheme providers must report to HMRC about rental properties and the income they generate.

The aim is to improve the quality and accuracy of property income information available to HMRC, helping the tax authority identify potential errors and tackle undeclared rental income.

HMRC is seeking views on several aspects of the reporting system, including:

• More detailed information: Expanding the information that letting agents and tenancy deposit scheme providers report about rental income.
• Tax identification details: Reviewing the use of tax identifiers to help HMRC match property income information to the correct taxpayer.
• Reporting frequency: Considering how often information should be provided to HMRC.
• Timeliness of reporting: Looking at how quickly information should be submitted.
• Implementation: Considering how any new requirements could be introduced effectively and proportionately.

Remember, appointing a letting agent does not remove your responsibility to ensure that your tax affairs are correctly reported.

You can read HMRC’s consultation here: Improving Property Income Data Reporting.

No Major Stamp Duty Relief for Property Investors

Landlords hoping for a reduction in the Stamp Duty Land Tax payable when purchasing additional properties were not given the relief they might have been hoping for in this Budget.

Disclaimer: This article provides general information about the Autumn Budget 2026 and is not intended as financial, investment or tax advice. Tax rules and individual circumstances vary, so we recommend consulting a qualified accountant or tax adviser before making financial decisions.