The Budget has now been announced, so we can replace the question marks in our Budget preview with confirmed measures. The headline for the private rented sector is a rise in income tax on property income from April 2027. For buyers, first-time buyers have new support to explore, and household energy costs receive some help. Here’s what the announcements mean in practical terms for landlords first, then homeowners and buyers. We’re not predicting further changes. This summary covers confirmed measures.
Landlord?
The property income tax rise is the Budget’s biggest change for landlords. From April 2027, income tax rates on property income will rise by four percentage points across all bands. This supersedes the earlier two-point plan.
For the 2027–28 tax year, the property income rates will be 24% at the basic rate, 44% at the higher rate and 49% at the additional rate. These rates apply to property income in England, Wales and Northern Ireland.
Landlords pay income tax on rental profit, not simply on rent received. So, for a landlord whose rental profit falls within the higher-rate band, the rate will be 44p in the pound from April 2027, up from 40p. The amount you owe will depend on your wider tax position and circumstances.
The practical effect may be a reduction in net rental income. That could be especially challenging if you have a mortgage, ongoing maintenance costs or already modest margins. It’s worth reviewing your rental figures ahead of April 2027-including income, costs and your plans for the property, and speaking to an accountant about your own tax position. We can’t give tax advice, and the right approach will depend on your circumstances.
The Budget doesn’t introduce new SDLT hikes for landlords. The earlier change removing SDLT on rent under assured tenancies, effective from 1 May 2026, remains in place.
If you’re feeling squeezed by the extra pressure of managing a rental, practical support can help protect your time and income. Lyss Homes’ fully managed lettings service includes free Rent Protection and Eviction Cover, alongside tenant sourcing, rent collection and day-to-day tenancy management. Speak to our lettings team to discuss whether it could suit your property.
Selling Your Home?
There’s no general Stamp Duty Land Tax (SDLT) cut or rise for people moving home. The Budget also introduces no new general tax on selling a home.
That means your decision to sell can stay focused on your own plans, finances and timing, not on an expected change to sales tax. In East London, buyers will still weigh up each property against their budget and alternatives, so pricing carefully from day one remains important. A clear valuation and honest local advice can help you set a realistic asking price and plan your next move.
If you’re only considering a sale, you don’t need to commit to the market to understand your options. You can book a free valuation and talk through a suitable approach with our team.
Buying Your First Home?
The main new support is Your First Home, a shared equity scheme for eligible first-time buyers purchasing participating new-build homes in England. It’s designed to help around 70,000 households.
To use the scheme, buyers will need a deposit of at least 2.5%. The government will provide an equity loan worth 20% of the purchase price, interest-free for the first five years. You’ll fund the remaining amount with a repayment mortgage from a participating lender.
The scheme has eligibility rules. Household income must be £110,000 or less outside London, or £140,000 or less in London. The property must be a qualifying new-build within its local price cap, and you’ll need a mortgage from a participating lender. Applications are expected to open in February 2027, with pre-registration due to start by late December 2026.
It could give some London first-time buyers another route into home ownership, particularly if saving a larger deposit has been the main hurdle. It won’t suit everyone, and you’ll still need to meet lender affordability checks. Before making plans, check the government’s Your First Home guidance for eligibility and scheme updates.
There’s also a future change for people saving towards a first home: a new First Time Buyer ISA is planned from April 2029, providing a simpler savings route and replacing the Lifetime ISA for new savers.
For existing Lifetime ISA users, the withdrawal charge for a first-home purchase above the current £450,000 price cap has been reduced from 25% to 20%, effective from 28 October 2026. The charge hasn’t been removed, but the reduction means buyers in this position face a smaller penalty than before.
Moving Home?
For second-steppers and other home movers, the Budget leaves standard residential SDLT rates unchanged. First-time buyer relief also remains as it is: 0% on the portion up to £300,000, then 5% on the portion from £300,001 to £500,000, where the purchase qualifies.
In other words, there’s no general Stamp Duty change to factor into a move. If you’re buying, you’ll still need to budget for the usual costs and make sure your plans work at today’s rates. You can search homes for sale and talk to our team if you’re at an early stage or ready to arrange viewings.
Own A Home In London?
Most ordinary London homes are unaffected by the High Value Council Tax Surcharge. It applies in England to residential properties worth £2 million or more and is due to take effect from 1 April 2028. It is most relevant to prime central London.
The annual charge will depend on the property’s value, with confirmed bands ranging from £2,500 to £7,500. A deferral scheme will be available for eligible households. If you think your property may fall within scope, consider seeking professional advice and checking the official rules as they are published.
There are also measures aimed at household energy costs. The Warm Homes loans scheme will help households spread the upfront cost of installing solar panels, batteries and heat pumps. Together, these technologies could cut bills by up to £550 a year, though actual savings will depend on your home, energy use and installation.
In England, eligible households in council tax bands A to D are due to receive a £100 Household Energy Payment in 2027. The temporary VAT cut on electricity bills has also been extended until 1 July 2027, which is expected to take around £50 off the annual price cap in April 2027. Ofgem has been asked to abolish gas standing charges and move those costs into unit rates; the effect on individual bills will depend on how much gas a household uses.
From 1 April 2027, the National Living Wage will rise by 3.9% to £13.21 an hour. This may affect labour costs for moving-house services and renters’ affordability more generally, but the impact will vary by service and household.
What About Housing Investment?
Alongside the measures affecting individual buyers and landlords, the Budget adds £1.5 billion for social and affordable housing, taking planned capital investment over the next 10 years above £40 billion. It also includes a boost to council housebuilding and £432 million over two years for rough sleeping.
These are longer-term commitments. They don’t change the immediate steps you need to take if you’re buying, selling or letting, but they form part of the wider housing picture.
Your Next Step
For landlords, the priority is to understand what the confirmed property income tax rates could mean for your figures from April 2027, and to review your position with an accountant ahead of the change. For sellers, there’s no new general stamp duty change to wait for, but local pricing still matters. First-time buyers have a new scheme to investigate, while home movers see no general SDLT change.
If you’re letting, talk to our lettings team. If you’re weighing up a move, book a free valuation for an honest view of your home’s value. And if you’re looking for your next home, browse our property search to see what’s available. We’re here to help, whether you’re ready to act or still working out your options.