The Autumn Budget has brought a number of changes that could affect the private rental sector, from increased tax on property income to changes in household energy bills and new reporting proposals for letting agents.
While some announcements offer short-term support for households, others could mean higher costs and additional responsibilities for landlords and property professionals.
So, what does the Autumn Budget mean for the lettings industry, and what should agents be keeping an eye on?
Here's a breakdown of five key announcements and how they could affect your agency and the landlords you work with.
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1. Higher tax on property income from April 2027
One of the biggest announcements for landlords is the increase in income tax rates on property income.
From 6 April 2027, the rates will increase to:
| Basic rate: | 24% (previously 22%) |
| Higher rate: | 44% (previously 42%) |
| Additional rate: | 49% (previously 47%) |
This represents a two-percentage-point increase across all three bands for property income.
What does this mean for letting agents?
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Higher tax rates: This could put pressure on landlords' rental profits, particularly those with larger portfolios. Agents may find themselves having more conversations about rental yields, property costs and whether their investments remain profitable.
- How to help landlords: It's a good opportunity to encourage landlords to review their finances and seek professional tax advice where needed.
How to calculate income tax
Landlords looking to understand how the tax changes could affect their rental income can use free online calculators to review their finances.
Tools such as rental income tax and rental yield calculators can help estimate potential tax liabilities, running costs and overall returns. These are useful starting points, but landlords should speak to a qualified accountant for advice based on their individual circumstances.
One important note: some third-party calculators may not yet reflect the new April 2027 property income tax rates, so landlords should check which tax year and rates are being used
2. Changes to household energy bills
Energy costs remain a concern for tenants and landlords, and the Budget includes several measures aimed at providing some short-term relief.
Here's what's changing:
| Whats changing | What this means | Government guidance |
| 0% VAT on domestic electricity | The temporary 0% VAT on qualifying domestic electricity supplies has been extended until July 2027. | Temporary zero rate of VAT in Great Britain for domestic electricity |
| £100 Household Energy Payment | Eligible households in Council Tax bands A–D in England will receive a £100 payment from January 2027. | What the Autumn Budget means for energy bills |
| Gas standing charges | The government has asked Ofgem to abolish domestic gas standing charges by the end of 2027, with these costs expected to move into unit rates. |
The electricity VAT extension is expected to reduce the annual Ofgem price cap by around £50 from April 2027.
To find more on the latest Price Cap, see our blog post: https://oneutilitybill.co/our-insights/whats-happening-with-the-energy-price-cap
What does this mean for letting agents?
- Tenant support: The £100 payment could help eligible households with energy costs, but it won't be available to everyone. The payment is for eligible main residences in Council Tax bands A–D in England.
- Gas standing charges: Moving these costs into unit rates could affect households differently depending on their gas usage.
- Keeping landlords informed: Agents should keep up with the latest guidance to help landlords understand how these changes could affect their tenants and their costs through void periods.
3. An opportunity to plan energy efficiency improvements
Landlords looking to improve their property's energy efficiency have another date to keep in mind.
The temporary 0% VAT rate on eligible energy-saving materials is due to end on 31 March 2027. From 1 April 2027, the rate will return to 5%.
Eligible installations include:
- Heating controls
- Heat pumps
- Solar panels and other qualifying renewable energy systems
- Wall and roof insulation
- Other qualifying energy-saving materials
The Budget also confirmed that heat batteries will be included in the reduced-rate VAT relief from April 2027.
Check out which materials are available here: https://www.gov.uk/tax-on-shopping/energy-saving-products
What does this mean for letting agents?
Support landlords with property reviews: This could include identifying properties that may require upgrades, discussing potential improvement plans and signposting landlords to official energy efficiency guidance.
Getting ready for the 2030 EPC Requirements: upcoming 2030 EPC requirements will mean energy efficiency remains a longer-term priority for landlords.
4. Increase in National & Minimum wages
The Budget also confirmed an increase to the National Living Wage & National Minimum wage from 1 April 2027.
| April 2027 rate per hour | Increase £ from 2026 rate | |
| National Living wage | £13.21 | up by 50p (from £12.71) |
| 18 - 20 Year Old | £11.27 | up by 42p (from £10.85) |
| 16 - 17 Year Old | £8.31 | up by 31p (from £8.00) |
| Apprentice | £8.31 | up by 31p (from £8.00) |
Check here for full guidance: https://www.gov.uk/national-minimum-wage-rates
For agencies employing staff on or around the National Living Wage, this could mean higher wage bills from April 2027.
For agencies already balancing busy workloads, it may also be worth looking at internal processes and where time-saving tools or better workflows could help teams work more efficiently.
5. New HMRC reporting proposals for letting agents
HMRC is consulting on new rules that could require letting agents and tenancy deposit schemes to report rental income information more regularly.
Proposals include:
- More frequent reporting: Moving towards monthly or quarterly submissions.
- Digital reporting: Introducing standardised reporting formats.
- Landlord information: Collecting details such as National Insurance numbers and company registration numbers.
The consultation closes on 20 January 2027. These are proposals, not confirmed requirements.
What should letting agents do next?
There are a few practical steps agencies can take to prepare for the Budget changes:
- Keep landlords informed: Share updates on property income tax and household energy costs.
- Review property portfolios: Identify properties that may need energy efficiency improvements.
- Check internal processes: Review landlord records and rental income reporting.
- Review operating costs: Factor the National Living Wage increase into 2027 budgets.
Staying informed can help letting agents support their landlords, prepare their teams and keep day-to-day operations running smoothly.
Further reading and useful resources
Want to find out more about the Budget announcements? We've included some useful government resources below to help letting agents and landlords understand the changes and prepare for what's ahead
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Property Income tax: https://www.gov.uk/renting-out-a-property/paying-tax
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Energy-saving VAT: https://www.gov.uk/tax-on-shopping/energy-saving-products
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Energy bills: https://www.ofgem.gov.uk
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EPC requirements: https://www.gov.uk/buy-sell-your-home/energy-performance-certificates
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National Minimum Wage: https://www.gov.uk/national-minimum-wage-rates
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HMRC reporting: https://www.gov.uk/government/organisations/hm-revenue-customs