By Becky Sawbridge, Residential Manager at Martin’s Properties

Much has been speculated as the industry looks ahead to Rachel Reeves’ November budget with much focus on how various potential changes will impact residential property.

Looking at the impacts on residential landlords in particular, here are four key that could impact this corner of the market.

Stamp Duty Land Tax
The Chancellor has indicated she ‘may’ scrap SDLT and replace it with an annual property or land tax. Given this has been widely discussed over the past few months, it has already had an impact on a currently constrained housing market. Rental demand has increased and this has been particularly evident across our Chelsea residential portfolio – especially for the 30s-40s age bracket and students. Across the board, people are seeing existing tenants staying for longer as they may not want to make a decision to buy in the current market and they could also be worried about limited availability of rental stock if they do leave. We have also seen an increase in 12-month only new leases, perhaps as people adopt a ‘wait and see’ approach regarding their buying decision.

If something does get announced in the budget, it is likely to be a consultation which will further stagnate the market, especially for the ‘wait and see’ buyers. If, however, a ‘scrappage’ and replacement scheme is announced, it is fairly likely that this will feed into prices, inflating them regardless.

Introducing NI payments on rental income
Rachel Reeves is potentially looking at putting 8% NIC on private real estate rental income in the Budget, which would directly affect private residential landlords. This is likely to exacerbate the existing trend, with more private landlords exiting the market, creating higher demand and inflating rents. This is a big factor for all residential landlords when they will be considering how to navigate the market.

Renters’ Rights Act 2025
Labelled by the Government as ‘the most significant reform the private rented sector (PRS) has seen since the Housing Act 1988’, the Bill passed into Royal Assent at the end of October 2025. While the provisions of the RRA are now set, the Government has yet to confirm a full implementation timeline. It is anticipated that the changes will be phased in, with some provisions expected to take effect sooner than others. December 27, 2025, marks the start date for new investigatory powers granted to local authorities. From this date, local authorities can use these new powers to investigate potential breaches of private rented housing laws. Other reforms in the Act, such as the abolition of S.21 evictions and the introduction of periodic tenancies, will be implemented later.

It is not clear at this stage how the RRA will interact with existing legislation during this transition period. Many of the provisions within the RRA require additional steps to be taken to bring them into force. Although full implementation is likely to be Spring / Summer 2026 this remains uncertain, and we await further Government guidance to clarify when and how the RRA will take full effect.

In terms of impact, this is likely to create further pressure on rental landlords who are already facing increasing costs on a number of fronts with the quantum of private landlords leaving the sector growing higher every year.

Council tax changes
There’s a strong possibility that the budget will introduce new council tax bands, or even the replacement of council tax with a new “local” property tax. This could be calculated relative to the property value paid by owner and at a rate set by each local authority, with suggestions that this could be levied on values up to a cap of £500,000. Such council tax increases could actually double the occupational costs for tenants. Many renters have a total rental budget, so increasing council tax payments will impact renters’ affordability still further.

Aside from the November statement, there is further impending legislation coming into effect in 2026. This includes the Fire Safety (Residential Evacuation Plans) (England) Regulations 2025 which comes into force in April. Uncertainty remains over new MEES target dates for minimum requirements of EPC level C.

With a national housing crisis and a mass exodus of landlords leaving the sector, the government needs to work out a balance to allow the private rented sector to perform, joining forces with landlords and working with them to understand what will help the current situation.