The Chancellor’s Autumn Budget landed today — and if you’re a buy-to-let investor with properties under £300,000, the message is much more positive than the headlines might suggest.
Yes, there’s a 2% rise on property income tax starting April 2027. But the key takeaway is that Portico’s properties are completely unaffected by the high-value home levy, and mid-market homes continue to offer strong, stable opportunities.
While some headlines focus on tougher taxes for high earners or expensive homeowners, the truth is simple: the mid-market is emerging as one of the clearest winners.
What actually changed — and what it means
1. Property income tax rises by 2%
From April 2027, all rental income will be taxed 2 percentage points higher:
Basic-rate: 20% → 22%
Higher-rate: 40% → 42%
Additional-rate: 45% → 47%
Why it’s not a deal-breaker:
It’s a modest, predictable increase.
Yields for well-priced mid-market properties remain strong.
It only affects tax on income, not the value of your properties.
2. The new “high-value home levy”
Yes — the Government has introduced an annual tax on homes valued at £2 million or more, aiming to raise additional revenue from high-end property owners.
What that means for you: Nothing.
Portico’s properties are priced well below that threshold — so your investments stay completely unaffected.
3. Income tax threshold freeze
With the personal allowance and higher-rate threshold frozen, more of people’s income will be taxed at higher marginal rates over time.
Why that matters:
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Yields from rental income become more attractive relative to taxed salaries.
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Investors seeking stable, post-tax income are likely to value rental properties more than ever.
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For clients relying on property income — domestically or internationally — rental yields take on extra importance.
4. No new landlord-targeted rules, no negative surprises for buy-to-let
Unlike some prior Budgets, today there were no new bans, no sweeping landlord restrictions, no new stamp-duty spikes for standard buy-to-let.
That means the fundamentals – rental demand, tenancy demand, capital growth potential – remain intact.
What Portico recommends — your next steps
If you own, or are thinking about investing in, a buy-to-let property:
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Get a cashflow and yield review – use updated assumptions post-Budget (rent levels, interest rates, taxes) to check your net returns.
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Think long-term – 5, 10, 15 years: our homes usually offer stability over speculation.
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Lock-in financing if you’re planning to buy soon – make use of current deals while the market absorbs the Budget news.
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Consider tenant demand trends: mid-priced homes (like the homes offered by Portico) are likely to remain in high demand – especially near commuter hubs, regional cities, and areas with strong rental demand.
Bottom line
The Autumn Budget 2025 wasn’t a blockbuster for luxury homeowners, but for buy-to-let investors, today’s changes could actually make property ownership more attractive.
At Portico, we believe that sub-£300,000 properties, our core offering, are now even better positioned to deliver long-term value, stable rental income, and resilient performance in a shifting market.
If you’d like us to run a quick, no-obligation “post-Budget review” of your portfolio (or help you explore new properties in this price range), just get in touch. We’re here to help.
For a full copy of the budget can be found here