Top 3 Changes Landlords Should Watch in the Autumn Budget 2025

A Complete Guide by Direct Assist – Chartered Certified Accountants

Published: 20 November 2025

The Autumn Budget 2025, set for 26 November, is expected to be one of the most influential financial announcements of the year — especially for landlords and property investors across the UK. With the government under pressure to close the gap in public finances after a slow economic period, many of the expected measures could directly affect rental income, expenses, and long-term property tax planning.

While no major tax rises have been confirmed, the Chancellor is likely to introduce stealth tax measures, threshold freezes and structural adjustments that may indirectly increase the tax burden on landlords. Understanding these early can help you prepare, plan, and protect your rental profits.

1.Income Tax: Threshold Freezes Likely to Affect Landlords

Although earlier speculation suggested a possible increase in Income Tax rates, recent discussions indicate that direct rate hikes are unlikely. Instead, the government is expected to implement a freeze on Income Tax thresholds.

Why this matters for landlords

A threshold freeze acts as a “stealth tax”. As rental income rises with inflation:

• More of your rental profits may be pushed into higher tax bands

• You could end up paying more tax without any change in official rates

• Landlords expanding their portfolios may experience the greatest impact

Some analysts believe the government may offset this by cutting employee National Insurance, but this relief does not typically benefit landlords unless they receive a salary through PAYE.

2. National Insurance: Possible Changes for Self-Employed Landlords

Many landlords operate as self-employed individuals or through property partnerships. Any changes to National Insurance could therefore have a meaningful financial effect.

Even if the government reduces employee NI as part of a broader strategy, this would not automatically apply to the self-employed. That’s because:

• Employee NI (Class 1) and self-employed NI (Class 2/4) are separate

• A cut to one doesn’t guarantee a cut to the other

What landlords should expect

• A freeze in Income Tax thresholds + no equivalent NI relief could increase total tax paid

• Any structural adjustments to Class 2/4 contributions may alter how rental profits are taxed

• Self-employed landlords should watch this area carefully, as small changes can significantly affect net income

3. VAT: A Strategy Shift Without Changing the Rate

Although ministers have publicly committed not to raise VAT rates, the Treasury may still increase revenue through technical adjustments, including:

• Freezing the VAT registration threshold (currently £90,000)

• Broadening which goods/services fall under VAT

• Updating zero-rated or reduced-rate categories

How a VAT threshold freeze affects landlords

A freeze means the threshold does not rise with inflation, causing more service providers to become VAT-registered sooner. This could indirectly raise costs for landlords who rely on:

• Contractors & maintenance firms

• Cleaning companies

• Property management services

• Tradespeople

If these suppliers must charge VAT, your operating expenses rise — reducing rental profit margins.

4. Conclusion: A Crucial Budget for Landlords

The Autumn Budget 2025 is shaping up to be a significant moment for UK landlords. Even if headline tax rates remain unchanged, subtle adjustments like threshold freezes, National Insurance restructuring and VAT scope changes may increase the tax burden indirectly.

Landlords should:

• Stay updated on the 26 November announcement

• Review how potential changes impact rental profits

• Plan ahead for cash flow, tax obligations, and portfolio growth

Proactive planning now can help protect your investments and ensure your portfolio remains profitable in 2025 and beyond.

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• Trusted Compliance Partner – Experienced accountants working closely with Companies House and HM Land Registry.

• Tailored Service – We adapt to your entity’s structure, deadlines, and property portfolio.

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