March 2026
Although November’s Budget announcements may now feel like a distant memory, several measures introduced at the time remain highly relevant as we enter 2026. Here’s a reminder of the key changes that could affect you:
Landlords will see additional pressure from tax changes. From April 2027, Income Tax on rental earnings will go up by 2 percentage points across the board, raising the basic, higher and additional rates on property income to 22%, 42% and 47% respectively. For many buy-to-let investors, this will reduce after-tax rental yields, adding to the ongoing cost pressures.
The government has announced its intention to reform the Lifetime Individual Savings Account (LISA). A consultation on reforms is due in early 2026, with the aim of implementing ‘a new, simpler
ISA product to support first-time buyers to buy a home.’ This marks a significant change for first-time buyers, who have relied on the LISA’s tax-benefits and the government bonus as a route to home ownership.
This has been dubbed by some as a ‘mansion tax’ and will apply from April 2028 to homes worth £2m or more in 2026. Owners (rather than tenants, who remain liable for Council Tax) of such properties will face a High Value Council Tax Surcharge (HVCTS) of £2,500 per year, rising to £7,500 for properties worth £5m or more.
Only a small fraction, around 0.5% of homes nationwide, are expected to be directly affected, with the greatest concentration in London and the South East. The measure may, however, have some impact on the wider market.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.
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