November’s Budget introduced a number of housing-related measures that are expected to affect landlords, homeowners and first-time buyers over the coming years. While some changes will not take effect immediately, they signal a clear shift in government policy and could influence decisions across the property market.
🔔 Here’s a quick reminder:
🏠 Landlords – higher tax on rental income
Landlords are likely to feel increased financial pressure following announced changes to the taxation of rental income. From April 2027, Income Tax on property earnings will rise by two percentage points across all bands, taking the basic rate to 22%, the higher rate to 42% and the additional rate to 47%. For many buy-to-let investors, these increases will reduce after-tax rental yields and add to existing cost pressures, including mortgage rates, maintenance costs and regulatory requirements.
💼 Lifetime ISA set for reform
First-time buyers are also facing a significant change, with the government confirming plans to reform the Lifetime Individual Savings Account (LISA). A formal consultation is due in early 2026, with the intention of introducing a new, simpler ISA product designed to support people buying their first home.
🏛 Council Tax changes for high-value homes
The Budget also outlined plans for a new High Value Council Tax Surcharge, sometimes described as a ‘mansion tax’. From April 2028, owners of homes valued at £2m or more (based on 2026 values) will face an additional annual charge of £2,500, rising to £7,500 for properties worth £5m or more. While only around 0.5% of homes are expected to be affected – mainly in London and the South East – the measure could still have wider implications for the high-end market.
The Budget outlined plans for a new High Value Council Tax Surcharge, additional annual charge of £2,500 for properties worth £2m or more rising to £7,500 for properties worth £5m or more, sometimes described as a ‘mansion tax’.
🚨 Data accurate as of the date of publication
🚨 Your home may be repossessed if you do not keep up repayments on your mortgage.
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, mortgage, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
ℹ️ Based on: Quilter Financial Services – Essentially Mortgages Q1 2026
