Yesterday’s Autumn Budget brought a mixture of news for the property market, with additional support for first-time buyers, further investment in housing and another tax increase for landlords.
For homeowners, buyers and landlords across Hull and East Yorkshire, the announcements raise some important questions about the cost of moving, investing in property and the future of the rental market. At Oscars Estate & Letting Agents, we’ve taken a closer look at what the changes could mean locally.
Further Tax Increases for Landlords
One of the biggest announcements was a further increase in the tax landlords pay on rental profits. From April 2027, property income tax rates will rise to 24% for basic-rate taxpayers, 44% for higher-rate taxpayers and 49% for additional-rate taxpayers. This represents a four percentage point increase on the original rates, following increases announced in both the 2025 and 2026 Budgets.
For a landlord making £10,000 in taxable rental profit, this could mean paying an additional £400 a year in tax compared with the original rates, depending on their individual circumstances. With landlords already facing increased maintenance costs, mortgage expenses and changes to rental legislation, the additional tax is unlikely to be welcome news. There is also concern about the longer-term impact on the rental market. If landlords decide to sell properties or reduce their investment, it could mean fewer homes available to rent, potentially putting further pressure on rental prices.
What About Landlords Who Own Property Through a Limited Company?
There is some better news for landlords who hold their rental properties through a limited company, as the new personal income tax increases will not apply to rental profits earned by the company. Instead, these profits will continue to be subject to Corporation Tax, which currently ranges from 19% to 25%.
With the growing difference between personal income tax and Corporation Tax rates, more landlords may now consider whether owning property through a limited company is a better long-term option. However, it isn’t necessarily the right choice for everyone. There can be additional costs involved, and transferring an existing property into a company could trigger Stamp Duty and Capital Gains Tax liabilities. There may also be personal tax to pay when profits are withdrawn from the company.
For landlords considering this route, taking professional tax advice before making any decisions is essential.
More Help for First-Time Buyers
There was more encouraging news for those hoping to take their first step onto the property ladder.
The Government confirmed £4.7 billion in funding for its new Your First Home scheme, which is expected to help around 70,000 first-time buyers purchase a new-build property. Under the scheme, eligible buyers could purchase a home with a deposit of just 2.5%, supported by a Government equity loan of up to 20% of the property’s value.
The scheme is expected to become available in spring 2027 and could make homeownership more accessible to buyers who are struggling to save a larger deposit. For the local property market, anything that helps first-time buyers take that initial step is potentially positive. First-time buyers often provide the starting point for property chains, allowing existing homeowners to move on to their next property.
A New ISA for First-Time Buyers
The Budget also confirmed plans for a new First Time Buyer ISA, due to launch in April 2029. The scheme will offer a 25% Government bonus on qualifying savings used towards purchasing a first home, with a maximum bonus of £20,000. Although the launch is still some way off, it could provide another useful option for those saving towards their first property.
No Changes to Stamp Duty
Despite speculation ahead of the Budget, there were no immediate changes to Stamp Duty rates or thresholds for residential property purchases. For those looking to move home or purchase an investment property, the existing rules remain in place. While a reduction in Stamp Duty may have encouraged more movement in the housing market, buyers and sellers at least have some certainty when planning their next move.
What Does This Mean for Hull and East Yorkshire?
The local property market continues to offer opportunities for buyers, sellers and landlords, although affordability and the overall cost of property ownership remain important considerations. For first-time buyers, the new Government support could help more people achieve homeownership, particularly where suitable new-build properties are available. For landlords, the outlook is more challenging. The combination of increased taxation, rising operating costs and changes to legislation means it is more important than ever to ensure rental properties are being managed efficiently and achieving an appropriate return.
At Oscars, we believe the private rented sector remains an important part of the local housing market. Landlords provide homes for thousands of people across our region, and maintaining a healthy supply of good-quality rental properties is essential. While the latest Budget presents further challenges, well-maintained and professionally managed properties can still offer attractive long-term investment opportunities.
Here to Help
Whether you’re thinking about buying your first home, moving house, reviewing your rental portfolio or considering investing in property, our team at Oscars is always happy to help. As an independent estate and letting agent established in 2008, we understand the local property market and the challenges facing homeowners and landlords across Hull and East Yorkshire. If you’d like to discuss how the Budget may affect your property plans, or would simply like an up-to-date sales or rental valuation, please get in touch.
Oscars Estate & Letting Agents