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Taxation of property

A practical overview of property taxation in the UK, covering how rental income and gains are taxed alongside key legislative and economic developments affecting landlords. With rising rents, shifting mortgage conditions and reforms such as the Renters’ Rights Act 2025 and upcoming tax changes, it highlights what property owners need to be aware of in a changing landscape. Kindly provided by our trusted partners Chase de Vere.

Overview

Property outlook

The buy‑to‑let market continues to be influenced by a range of economic, legislative and tax factors. Recent data indicates that average English rents increased by 4.4% over the year to November 2025, with the average monthly rent reported at £1,422. Over the same period, mortgage rates reduced following a series of base rate cuts during 2025, with market expectations suggesting the potential for further changes during 2026.

At the same time, landlords are facing an evolving regulatory environment. The Renters’ Rights Act 2025 introduces enhanced tenant protections, with reforms being implemented in stages. In addition, announcements made at the November 2025 Budget indicate that, from 6 April 2027, income tax rates applicable to property income will increase by two percentage points.

These factors illustrate the importance of understanding how changes in legislation, taxation and economic conditions may affect property ownership and rental activity.

Please note that all examples included in this guide are fictitious.

Chase de Vere does not provide tax advice. Clients should seek professional tax advice before making decisions.

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