Quick Summary

Property income tax rates rising from April 2027 — higher-earning landlords will feel this most.
Corporation tax unchanged, making limited company (SPV) structures even more attractive for portfolio landlords.
Housing supply increasing — 170,000 new homes pledged, easing long-term price pressure.
Mortgage rates expected to fall — better affordability for landlords remortgaging soon.
No big changes to Stamp Duty — stability for purchases, but no new incentives either.

1 | Property Income Tax Is Going Up — What That Means

The Budget confirmed an increase in the tax rate applied to property income, coming in from April 2027.

This mainly hits landlords who own properties in personal names, because rental profits are treated as income and taxed at:

depending on their tax band.

From 2027, higher-rate and additional-rate landlords will pay more on rental income — reducing net yields.

Who is most affected?

Landlords with 2–5 properties held personally
Higher-rate earners
Those with higher mortgage costs (less margin to absorb tax increases)
Anyone relying heavily on rental income as personal income

2 | Why Limited Company Structures Look More Attractive Now

Because corporation tax isn’t rising in the Budget, this widens the gap between:
▪ Corporate tax (applied to SPV Buy-to-Let companies)
vs
▪ Personal income tax (applied to landlords who own personally)

Benefits of using a company

Full mortgage interest relief (unlike personal ownership)
Profits taxed at corporation tax rates, not higher-rate income tax
Easier to reinvest profits for new property purchases
More favourable for building a portfolio

Downsides still apply

Higher mortgage rates on SPV mortgages
Legal costs & accounting costs
SDLT + possible CGT if transferring existing property

Conclusion: The Budget didn’t create brand new incentives — but it did make company ownership relatively more tax-efficient than before.

3 | Mortgage Rates: Positive Signs for Landlords

Although the Budget doesn’t directly set mortgage rates, the wider economic signals point to:

✔ Lower inflation

✔ Base rate cuts

✔ Cheaper fixed-rate funding for lenders

Expect:

5-year BTL fixes to continue drifting downward
Better rates for low-LTV landlords (60% & 65% LTV sweet spots)
Specialist lenders releasing competitive SPV company products
More flexible affordability calculators for landlords with mixed income types

If your remortgage is due in the next 6–9 months, this Budget is generally good news.

4 | More Housing Supply = Long-Term Stability

The Budget committed to 170,000 extra homes, driven by:

Faster planning approvals
Regeneration of brownfield land
Infrastructure investment to unlock stalled sites

For landlords, more supply usually means:

Less extreme price rises
Stronger rental demand in regenerated areas
Better purchasing opportunities, especially for 1–2 bed units

This is good long-term news for rental investors looking to expand.

5 | No Changes to Stamp Duty (Yet)

Stamp Duty remains untouched in this Budget.

What this means:

No new surcharges
No relief for first-time landlords
No cuts for portfolio expansion
Predictable costs for planning new purchases

6 | Should Landlords Change Strategy After This Budget?

👍 “Yes” — if you:

Are a higher-rate taxpayer
Want to grow your portfolio
Plan to remortgage multiple properties soon
Want full mortgage-interest deductibility

🤔 “Maybe” — if you:

Only own one property
Are basic-rate taxpayer
Don’t plan to expand
Don’t want corporate admin

👎 “Probably not” — if you:

Are close to retirement
Want to simplify your finances
Prefer personal-name lending flexibility

📞 Want to Explore Your Tax & Mortgage Options?

We don’t provide advice directly — but we can connect you to a specialist adviser who can:

Compare personal vs limited-company costs
Check how the Budget affects your portfolio
Run BTL remortgage and tax-efficient repayment strategies
Provide a full income & corporation tax projection for landlords

Request Specialist Call-Back