This week’s top headlines: Landlords to pay more property income tax from 2027 and owners of properties worth more than £2 million will be hit by a new “mansion tax” that will net the government £400 million per year.

Explore these and other major industry updates below:

Landlords to pay more property income tax from 2027: Autumn Budget 2025

Chancellor Rachel Reeves has confirmed that property income tax rates will rise by 2% from April 2027, lifting basic, higher and additional rates to 22%, 42% and 47%.

The OBR estimates the change will raise £500m annually and predicts costs will be passed to tenants through higher rents, though softer house prices may offset some impact.

Analysts warn the move could prompt more individual landlords—already under financial strain—to exit the sector, reducing rental supply. Reeves also introduced a new mansion tax on homes worth over £2m, expected to generate £400m by 2031.

Budget tax attack means rent rises and landlords selling up, experts say

Experts say the Chancellor’s decision to raise property income tax rates by 2% from April 2027 will push rents higher and encourage more landlords to sell, with industry bodies warning that increased costs, tighter margins and new regulatory pressures will likely be passed on to tenants.

The NRLA, lenders and market analysts argue the move will worsen rental supply and affordability, while some agents predict it will accelerate landlord exits already underway. However, tenant groups welcomed the change, saying it will ensure landlords contribute a fairer share to the tax system after years of imbalance.

New Mansion Tax to raise £400m: Autumn Budget 2025

The government will introduce a council tax surcharge on homes worth over £2 million from April 2028, raising around £400 million a year. With charges ranging from £2,500 to £7,500 and affecting fewer than 1% of properties, analysts say the measure is less severe than feared and brings some market clarity, though it may encourage downsizing and prompt sellers to price homes below the threshold before it takes effect.

Autumn Budget 2025: Worth the wait?

The Budget was overshadowed by the accidental early release of the OBR report, but its main announcements centred on a new mansion tax and higher property income tax.

From 2028, homes valued above £2m will face a council tax surcharge raising £400m a year, a measure that analysts say offers some certainty but critics argue will distort the market and add complexity.

Property income tax will also rise by 2% from 2027, prompting warnings that already-stretched landlords may exit the sector, reducing rental supply and pushing rents higher.

Despite speculation, no stamp duty reform emerged, leaving some disappointed, though many accept this was never going to be a giveaway Budget.

Potential property tax changes causing market uncertainty: Rightmove

Rightmove data shows that rumours of major property tax changes in the upcoming Budget are creating uncertainty, especially in higher-value markets.

Sales of £2m-plus homes are down 13% year-on-year, and sales of properties between £500,000 and £2m have fallen 8%, while the under-£500,000 sector is less affected. A proposed annual property tax to replace stamp duty would hit 30% of homes for sale in England—and 59% in London—much harder than northern regions.

Rightmove reports that nearly one in five potential movers has paused their plans amid the speculation, with experts saying buyers and sellers are increasingly frustrated and simply want clarity.

Aldermore presses govt to reinstate help to build and offer stamp duty holiday

Aldermore is urging the Government to use the Autumn Budget to introduce an 18-month Stamp Duty holiday for new homes under £500,000 and to reinstate Help to Build.

Its survey of first-time buyers shows strong demand for renewed support, including more creative incentives and the return of Help to Buy. Aldermore says these measures, alongside planning reform and better backing for SME builders, would stimulate sales, support buyers and help smaller developers increase housing supply.

Budget clarity means more UK interest rate cuts, says deVere chief

The deVere Group says the Autumn Budget clears the way for UK interest rates to fall sooner, forecasting a December cut and three more in 2025 as growth slows and inflation eases.

CEO Nigel Green said measures like rail fare freezes and energy support reduce uncertainty and inflation, allowing the Bank of England to focus on growth. He added that three rate cuts next year are realistic to protect employment and investment.

Teachers BS ups maximum LTI to 7x income

Teachers Building Society has raised its maximum lending for teachers and education professionals from 5x to 7x income. The change applies to a wide range of education roles, and for joint applications, only one applicant needs to work in the sector.

This means a single teacher earning £33,000 can now borrow up to £196,400, a 19% increase, while joint applicants on the same salaries can borrow up to £412,200, a 25% rise.

CEO Gavin Opperman said the move aims to make homeownership more accessible for those in education. Earlier this month, Barclays also increased its maximum loan-to-income to six times income.

Government could scrap Lifetime Isa: Autumn Budget 2025

The government will consult in early 2026 on the future of the Lifetime Isa, exploring whether a new, simpler Isa could replace it to help first-time buyers. Budget documents state that any new product would be offered in place of the Lifetime Isa.

Quilter tax expert Rachael Griffin said the current Lifetime Isa has been “confused,” trying to serve both retirement and first-home savings goals, and criticized its withdrawal penalties, despite the popularity of the 25% government bonus.

Earlier this year, the Treasury select committee reviewed whether the product should be revamped, left unchanged, or scrapped.

Prepare for valuation chaos, disputes and cliff edges’: Industry verdict on Mansion Tax

Experts warn the new mansion tax, targeting properties over £2 million from April 2028, could trigger widespread valuation appeals and market distortions.

Starting at £2,500 and rising to £7,500 for homes over £5m, it may create “cliff edges” between bands, delay sales or improvements, and generate bureaucratic costs that could outweigh the £400m expected revenue.

Although affecting less than 0.5% of sales, the tax could ripple across the market, slowing transactions and impacting pricing and mobility.