The Autumn 2025 Budget is coming soon, and based on what’s already been announced and leaked, here’s a quick, clear guide on what it could mean for property investors and tenants.
The Good News for Investors
1. More motivated sellers (especially higher-value homes)
The government is planning to raise taxes on expensive homes. This might push some owners to sell sooner meaning better deals and potential discounts for investors.
2. Still strong opportunities in cheaper, high-yield areas
If you invest in sub-£300k properties, HMOs, BRR projects, or regional markets, this Autumn Budget doesn’t hit you as hard. Cashflow-focused deals stay strong.
3. Company structures become even more attractive
If new taxes hit personal landlords, limited companies may become the more tax-efficient route. Good news if you already buy this way.
The Bad News for Investors
1. Higher council tax on expensive homes
Expect higher ongoing costs for Band F–H properties and £1m+ homes. If you hold big single lets or high-value stock, your profit may reduce.
2. Possible National Insurance on rental income
One of the biggest rumours: landlords may have to pay NI on rental profits. This would reduce net income for anyone owning property in their personal name, especially if heavily mortgaged.
3. Stamp duty and CGT could tighten again
The government needs to raise more money, so additional property taxes could increase. This mainly impacts people flipping or selling regularly.
The Impact on Tenants
This Budget isn’t just about landlords, tenants will feel it too.
1. Lower energy bills (potentially)
There’s talk of cutting green levies and reducing energy-related VAT. If that happens, tenants could see slightly cheaper monthly bills.
2. Pressure if landlords exit the market
If taxes rise too much and smaller landlords sell up, the rental market could become:
- More competitive
- More expensive
- With less available stock
3. EPC + energy efficiency uncertainty
If the government reduces funding for green upgrades, landlords may delay improvements. This means some older rental homes might stay less energy efficient for longer…not great for tenant comfort or bills.
So… is this Autumn Budget good or bad?
It’s tougher for investors who own expensive homes, are highly leveraged, or hold properties in their own name.
But it’s not all bad news investors who:
- Buy well
- Add value
- Focus on yield
- Use company structures
They’re likely to still do well, and may even benefit from more motivated sellers and less competition.
My Property’s Group’s Advice Right Now
- Run your numbers again – assume slightly higher tax and council tax.
- Focus on high-yield deals – BRR, HMOs, and strong regional rentals.
- Consider using a company for new purchases.
- Keep some cash/borrowing power ready – good opportunities may appear after the Autumn Budget.
- Support tenants where possible – lower arrears and fewer voids will matter even more if taxes rise.
The Chancellor of the Exchequer, Rachel Reeves, will deliver the Autumn Budget on Wednesday 26th November.