Landlords have another important financial consideration to factor into their plans following last week's Autumn Budget, with the Chancellor announcing further increases to income tax rates on property income from April 2027.
The changes will affect individual landlords and partnerships receiving rental income, with each of the three property income tax rates increasing by two percentage points.
From April 2027, the rates will be:
● Basic rate: increasing from 20% to 24%.
● Higher rate: increasing from 40% to 44%.
● Additional rate: increasing from 45% to 49%.
The changes will apply to landlords in England, Wales and Northern Ireland, although Scotland has separate powers over income tax rates.
For anyone letting property in Finchley, the announcement provides a timely reminder to review the financial performance of their rental investment and consider what the changes could mean over the longer term.
How is the local rental market performing?
Despite the additional tax considerations, the local rental market continues to demonstrate demand.
According to the latest Office for National Statistics figures, average monthly private rents in the London Borough of Barnet reached £1,953 in September 2026, representing an annual increase of 2.9%.
There are also differences depending on property size. Average monthly rents stood at £1,502 for one-bedroom properties, £1,862 for two-bedroom properties and £2,261 for three-bedroom properties.
For landlords, these figures provide a useful indication of the wider local market, although individual rental values will depend on the property's location, condition, size and available amenities.
What should landlords be considering?
With the new tax rates not taking effect until April 2027, landlords have time to review their position and plan ahead.
There are several areas worth considering:
Review your rental income
Make sure your current rent reflects the property's condition, location and what comparable homes are achieving locally. Regular reviews can help ensure that your investment remains competitive.
Understand your costs
Consider mortgage payments, maintenance, insurance, management fees and other property-related expenses. Understanding the overall financial picture is particularly important when tax liabilities change.
Think about your longer-term plans
For some landlords, the changes may prompt a review of whether to retain, expand or sell their property portfolio. Others may simply need to adjust their financial planning.
It is worth speaking to a qualified accountant or tax adviser to understand the implications for your individual circumstances. The tax changes apply to individuals and partnerships, rather than being a blanket increase for every type of property-owning business.
A changing market requires good local advice
Being a landlord involves more than collecting rent. Understanding local demand, maintaining a property and ensuring that rental arrangements remain compliant are all important parts of managing a successful investment.
With further financial and regulatory changes affecting the private rented sector, having an experienced letting agent to help navigate the market can make a real difference.
David Harris & Co are here to help you
At David Harris & Co we understand the challenges facing landlords and the importance of making informed decisions about rental properties. Whether you are an established landlord or considering letting a property for the first time, our local knowledge can help you understand the Finchley rental market.
From finding suitable tenants and managing your property to providing guidance on current rental conditions, we are here to help make letting as straightforward as possible.
Contact David Harris & Co to discuss your property and letting requirements. Call us on 0208 346 9122 to get started.
