Autumn Budget 2026: 4 changes you need to know

John Healey delivered his first Budget on 28/10/2026. It brought no big leasehold or lettings reforms, but several changes will land on property management and accounts teams. We've narrowed them down to the four that matter most, with what each means for you and what to do next.

1. Landlords' tax on rental profits rises again

From 06/04/2027, individual landlords will pay 24%, 44% and 49% on rental profits. That is a further 2 percentage points on top of last year's rise, and 4 points more than today. It applies in England, Wales and Northern Ireland; landlords who own through a company are not affected.

Why it matters: Accounts teams will field more questions from landlord clients about their tax bills, incorporating, and whether to sell. Accurate, timely income and expense figures will matter more than ever.

What else changes:

• Making Tax Digital still starts in April 2027 for landlords with qualifying income over £30,000. They will get no late-submission penalty points for quarterly updates in 2027/28.
• Third-party reporting: the government will consult on extending third-party reporting of property income data. This could put new duties on letting and managing agents.
• Finance cost relief:  reports say it stays aligned with the property basic rate. Check the Finance Bill for the final position.

What to do: Re-run 2027/28 projections for landlord clients at the new rates, and identify who joins Making Tax Digital in April 2027.

2. Staff and contractor costs go up

The National Living Wage rises 3.9%, from £12.71 to £13.21 an hour, on 01/04/2027. The rate for 18 to 20-year-olds rises to £11.27.

Why it matters: Cleaning, gardening, concierge and security contracts are labour-heavy, and contractors will pass the rise on. Directly employed site staff will cost more too. Those costs flow straight into 2027/28 service charges.

What to do: Build the rise into 2027/28 service charge budgets now, and ask contractors for revised prices early, so leaseholders see realistic estimates rather than a year-end balancing charge.

3. Energy support mostly misses communal supplies

The temporary 0% VAT rate on electricity is extended until 30/06/2027, and gas standing charges are to be abolished from 2027. Both are aimed at household bills.

Why it matters: The VAT cut covers "qualifying domestic electricity supplies". Landlord supplies to communal areas, bought on commercial contracts, are unlikely to qualify. Leaseholders may expect lower energy charges that won't appear in their service charge.

What to do: Check whether each block's communal supply is classed as domestic or commercial before you budget for any saving. Be ready to explain the difference to leaseholders.

4. Business rates: new multipliers and more relief

New business rates multipliers apply in England from 01/04/2027, and retail, hospitality and leisure occupiers get more relief.

From April 2027, the Small Business Rate Relief threshold for retail, hospitality and leisure rises from £12,000 to £18,000. The Chancellor says around 70,000 more businesses will pay no rates. Other properties in these sectors will see rates frozen in real terms for two years.

Why it matters: Rates costs change for every commercial property, and some tenants' bills will fall to zero. Under some leases, that changes what you recharge.

What to do: Update 2027/28 rates figures to the new multipliers. Flag retail, hospitality and leisure tenants with rateable values up to £18,000, and check how your leases recharge rates.

Also worth knowing

• Capital Gains Tax: main rates unchanged at 18% and 24%. The Business Asset Disposal Relief lifetime limit halves to £500,000 for disposals on or after 06/04/2027.
• Stamp Duty Land Tax:  no rate changes, and the 5% surcharge on additional homes stays.
• ATED:  annual charges for companies holding homes worth over £500,000 rise 3.5% from 01/04/2027.
• High Value Council Tax Surcharge: goes ahead for homes in England worth £2m or more from April 2028. Rates are not yet published.
• Leasehold and Renters' Rights:  nothing new in the Budget. Existing reform timetables and compliance work continue.

For what we expected going in, see our 12/10/2026 preview.

How Propman can help

Propman keeps service charge budgets, rent and expense records, and landlord statements in one place. That makes it quicker to re-run 2027/28 budgets, produce accurate landlord income figures for tax and Making Tax Digital, and report on business rates across a portfolio. To see how Propman could support your team through these changes, book a consultation.

This article is general information based on announcements and reports on 28/10/2026, and is not tax, legal or financial advice. Measures may change before they become law. Take professional advice for your circumstances.