Yesterday's Autumn Budget (28 October 2026) brought the change many landlords feared: income tax on rental income will rise by a further two percentage points. If you own buy-to-let property in your own name, now is a good time to check your numbers and your mortgage plans.
What was announced
From 6 April 2027, property income will be taxed at 24% (basic rate), 44% (higher rate) and 49% (additional rate). That is up from the 22%, 42% and 47% already set by last year's Budget, so the total rise on rental income is now four points compared with today's rates.
The tax relief on mortgage interest for individual landlords (Section 24) is reported to move up to 24% for 2027 to 2028, in line with the new basic rate. Most of these measures are announced but not yet law, and are expected in the next Finance Bill.
Other points for landlords: Stamp Duty rates and the 5% additional-property surcharge are unchanged, Capital Gains Tax rates are unchanged, and Corporation Tax rates stay at 19% and 25% to March 2029. The new landlord register fee in England of £65 per property a year, from 15 December 2026, was confirmed. Making Tax Digital thresholds stay at £30,000 from April 2027 and £20,000 from April 2028.
What it means for your mortgage
Higher tax does not change what a lender charges, but it does squeeze the profit left after the mortgage is paid. Industry voices were quick to warn that some landlords may raise rents, stop buying or sell, which could tighten rental supply.
If you are planning to refinance, buy, or restructure in 2027, it pays to model your cash flow at the new rates now. Some landlords will look again at holding property through a limited company, while others may reduce borrowing or rebalance a portfolio. Each route has costs, such as Stamp Duty and Capital Gains Tax on a transfer, so the right answer depends on your own figures.
Quick tips
- Re-run your sums on rent, mortgage cost and tax at the April 2027 rates.
- Speak to your accountant before changing ownership structure. We arrange the finance; tax advice should come from a qualified tax adviser.
- Check when each fixed rate ends so a remortgage can be lined up three to six months ahead.
- Budget for new costs such as the £65 register fee and Making Tax Digital software.
- Keep your portfolio details up to date: lenders want a clear schedule of properties, rents and loans.
How OMB can help
Our CeMAP-qualified advisers work with buy-to-let and portfolio lenders across the market, and we were named Buy-to-Let Mortgage Broker of the Year at the Business Moneyfacts Awards 2023. Try our buy-to-let calculator to test rental cover, download our free buy-to-let mortgages guide, or see how we helped a landlord refinance in our Manchester top-slicing case study.
Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. Tax treatment depends on individual circumstances and may change.
Sources
- The Negotiator – Autumn Budget 2026: what did Chancellor Healey announce for the housing market? (28 October 2026)
- LetCompliance – Budget 2026: what changed for landlords (28 October 2026)
- Mortgage Introducer – "Missed the mark": industry reaction to Budget rolls in (28 October 2026)
To talk it through, contact us or start your enquiry.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.