Budget Day, 28 October 2026: What UK Landlords Need to Know – PRS Database Fees, Property Income Tax Rises and What Is Off the Table

Sixty-five pounds per property, per year. That is the new price of simply registering a rental home in England once the Private Rented Sector database starts rolling out on 15 December 2026. Today, Wednesday 28 October 2026, Chancellor John Healey delivers his first Budget under Prime Minister Andy Burnham, with the OBR forecast published alongside it. While the headlines will focus on growth forecasts, landlords will be scanning for something far more specific: what it means for their rental income, their paperwork, and their portfolios.

For landlords, the Autumn Budget 2026 story is less about shock announcements and more about confirmation. Most of the big changes affecting landlords were locked in long before today. This article separates what's actually happening from what's merely been floated in commentary.

Key Takeaways

• Property income tax rates rise by 2 percentage points from 6 April 2027, already legislated, not new Budget news
• The PRS database £65 annual fee per property begins rolling out from 15 December 2026
• Stamp duty changes and rent controls have been ruled out, and a CGT rise has reportedly been ruled out
• Making Tax Digital quarterly filing becomes mandatory for landlords earning over £30,000 from April 2027
• National Insurance on rental income and a land value tax remain speculation only, with no formal proposals published

What's Already Confirmed Before Budget Day

None of the following depend on today's speech. They were legislated or confirmed in the months before this Budget, and remain in place unless the Chancellor announces otherwise.

Property Income Tax Rises From April 2027

From 6 April 2027, tax on property income rises by two percentage points across the board: basic rate to 22%, higher rate to 42%, and additional rate to 47%. The Section 24 finance-cost tax credit, used by landlords with mortgages, also moves to 22%. The OBR estimates this raises around £500 million a year. According to Hamptons, landlords operating through limited companies are unaffected, since this applies to personally held property income, not corporation tax.

Dividend Tax Already Biting Company Landlords

Since 6 April 2026, dividend tax rates of 10.75% and 35.75% have applied. Landlords who incorporated to shelter rental profits in a company structure, then drew that money out as dividends, are already feeling this one.

The PRS Database Fee: £65 Per Property, Per Year

Announced on 9 September 2026, the Private Rented Sector database requires landlords to register every rental property, paying £65 per property annually. Rollout begins region by region from 15 December 2026. This sits alongside the Renters' Rights Act, in force since May 2026, which already requires far more robust record-keeping on property condition, repairs, and tenancy management.

Making Tax Digital Deadlines Are Real

Landlords with gross rental income over £30,000 must file under Making Tax Digital from 6 April 2027, down from the £50,000 threshold that applied from April 2026. Penalty points for late quarterly updates start in April 2027 too. HMRC confirmed on 12 August 2026 that 436,000 sole traders and landlords had already filed a first quarterly update, suggesting the system is bedding in ahead of full enforcement.

The High Value Council Tax Surcharge

From April 2028, homes valued at £2 million or more in England face a surcharge of between £2,500 and £7,500. This is a way off yet, but portfolio landlords with high-value properties should start factoring it into long-term planning now.

What Has Been Ruled Out Ahead of the Budget

"That won't be happening." – Prime Minister Andy Burnham, on stamp duty changes

Ahead of the statement, ministers have been unusually clear about what will not be in it:

• Stamp duty stays untouched. The 5% additional-property surcharge remains exactly as it was.
• No single property tax. Burnham has rejected replacing stamp duty and council tax with one annual property tax "at this stage".
• No rent controls or freezes. Housing Secretary Angela Rayner confirmed rent controls in England are not currently being considered.
• No CGT rise. According to the Financial Times, a capital gains tax increase was reportedly ruled out. Residential gains remain taxed at 18% and 24% after the £3,000 annual exempt amount.

Speculation Landlords Should Not Act On Yet

Some ideas keep resurfacing in commentary without ever becoming formal proposals. Treat these as noise for now, not planning inputs.

• National Insurance on rental income has been mentioned repeatedly in commentary, but no proposal has been tabled.
• A land value tax has been discussed partly because the Prime Minister has previously written in support of one. The NRLA notes no detailed proposal exists.
• Council powers to take over poorly maintained rentals were floated by Burnham in his 29 September conference speech, with no published detail since.

Why Documented Property Condition Now Matters More Than Ever

The combination of the PRS database rollout and the Renters' Rights Act changes the risk calculation for landlords significantly. Registration isn't just a fee, it's a record. Local authorities and tenants increasingly expect landlords to demonstrate compliance on:

A professional RICS condition report provides exactly this kind of evidence. If a dispute arises under the Renters' Rights Act, or a local authority asks questions tied to the PRS database, having an independent, dated record of property condition is far stronger than a landlord's own notes.

Sell, Hold, or Incorporate: The Portfolio Decision

Rising property income tax, a new annual database fee, and incoming MTD compliance costs are pushing more landlords to reassess structure. Broadly, three paths are being discussed:

1. Selling – appealing for landlords nearing retirement or with thin yields, especially given mortgage rates remain elevated.
2. Holding – still viable for landlords with strong rental yields who can absorb added compliance costs.
3. Incorporating – attractive given company landlords are unaffected by the 2027 income tax rise, though dividend tax at 10.75%/35.75% erodes some of that benefit when profits are extracted.

None of these decisions should be made without professional tax advice, since individual circumstances – mortgage structure, portfolio size, retirement timeline – vary enormously.

Market Conditions Landlords Are Navigating

Context matters for timing. Rightmove's October 2026 data shows the average two-year fixed mortgage rate at 5.55%, up from 5.29% in September and 4.25% back in February. The Bank of England base rate sits at 3.75% ahead of its 5 November 2026 decision, with a Reuters poll of 63 economists showing 54 expecting a rise to 4%. CPI inflation was 3.5% in September. Landlords refinancing in the coming months should expect continued pressure on borrowing costs.

Frequently Asked Questions

When does the PRS database fee start?
Rollout begins region by region from 15 December 2026, at £65 per property per year.

Is the Budget changing stamp duty for landlords?
The Prime Minister has ruled out stamp duty changes in this Budget, so the existing 5% additional-property surcharge is expected to stay unchanged.

Are company landlords affected by the 2027 tax rise?
No. The two-point property income tax rise applies to personally held income, not corporation tax, per Hamptons analysis.

Is rent control coming to England?
Not currently. Housing Secretary Angela Rayner has said rent controls are not being considered at this stage.

What is Making Tax Digital and who does it affect?
From April 2027, landlords with gross income over £30,000 must file quarterly digital updates, with penalty points for late submissions.

Could National Insurance be added to rental income?
This is speculation only. No formal proposal has been published.

Conclusion: Next Steps for Landlords

Whatever the detail of today's speech, the direction of travel for landlords is already set: higher property income tax from 2027, a new database fee from December 2026, and continued compliance obligations under the Renters' Rights Act, alongside firm signals against stamp duty changes, rent controls and, reportedly, a CGT rise. Check the published Budget documents this evening for any detail that changes the picture. Landlords should use the coming weeks to review mortgage exposure ahead of the 5 November rate decision, prepare for PRS database registration, and ensure property condition records are robust and independently verified. The Survey Merchant provides RICS-standard condition reports and EPC assessments nationwide, giving landlords the documented evidence they need heading into a more heavily regulated letting market. Book a survey now to get ahead of the 15 December rollout.