This autumn feels a little different for landlords across Richmond and the surrounding boroughs. The usual pre-Budget speculation is building, but this year it comes with a change of Chancellor and a date to watch – Wednesday 28 October 2026.
You may have seen talk of the mansion tax threshold dropping, or Capital Gains Tax rising. Nothing beyond what has already been announced or legislated has been confirmed, but it has been enough to make some landlords pause and wonder whether to act now or wait.
It’s worth remembering, though, that the market itself remains on a relatively strong footing. Chase Buchanan’s latest data shows robust tenant demand across the area, with new instructions also up year-on-year – a positive sign that despite the wider economic uncertainty, there continues to be good underlying activity in the local lettings market.
The key is not to get pulled too far by speculation. Some changes affecting landlords are already legislated, while others have been announced but are still being developed. Separating the two is important when considering what the Budget might have in store.
One significant change affecting landlords is already law, while another major measure has been announced and is being developed ahead of its planned introduction.
From April 2027, new income tax rates will apply to property income in England, Wales and Northern Ireland. The rates will be 22% at the basic rate, 42% at the higher rate and 47% at the additional rate, compared with the current 20%, 40% and 45%.
This means the rate applied to taxable rental income will increase for landlords affected by the change, although the actual impact will depend on each landlord's wider tax position, including their income, allowances, losses and finance costs.
A year later, from April 2028, the Government plans to introduce a new High Value Council Tax Surcharge on residential properties valued at £2 million or more under the current proposals. Often referred to as a "mansion tax", it would sit alongside existing Council Tax rather than replacing it.
The proposed surcharge is currently structured in bands ranging from £2,500 to £7,500 a year, depending on the property's value. Some properties in Richmond and the surrounding areas could fall close to the current threshold, so it is worth keeping an eye on how the final design develops, even though the charge itself is still some way off.
Richmond Council estimates that around 5,730 properties in the borough could be affected by the proposed High Value Council Tax Surcharge under the current £2 million threshold. This makes the measure particularly relevant to higher-value properties across the borough, although the final design and threshold could still change before its planned introduction in April 2028.
Income tax thresholds are also being kept frozen for several years. The Personal Allowance and basic-rate limit are being maintained at their current levels through to 2030/31, while the higher-rate threshold remains at £50,270. As rents and other income rise, some landlords may find themselves moving into higher tax bands even though the thresholds themselves remain unchanged.
This is a gradual effect rather than a headline announcement, but it is one worth factoring into longer-term planning.
“None of this is about scaremongering,” explains Michael Peacock, Head of Chase Buchanan. “It's about landlords knowing what's already confirmed, so they're not caught off guard next April. The changes coming in 2027 are confirmed, and the earlier landlords plan around them, the more comfortably they can absorb them."
What's confirmed is always easier to plan around, but what remains uncertain needs to be watched rather than assumed.
Beyond the measures already confirmed or legislated, the usual pre-Budget rumours are doing the rounds.
There is currently reporting that the Government is considering lowering the High Value Council Tax Surcharge threshold from £2 million to £1.5 million. That remains unconfirmed and could change before the Budget. If introduced, a lower threshold would potentially bring more higher-value properties in South West London within scope.
There has also been speculation about changes to Capital Gains Tax, which would be particularly relevant to landlords considering selling a property that is not their main home. No specific CGT change should be treated as confirmed unless and until the Government announces it.
There has also been discussion about replacing existing property taxes with a land value tax. The Prime Minister has ruled out a land value tax, although that does not mean other changes to the tax system cannot be considered ahead of the Budget.
Michael Peacock puts it clearly:
“Our advice to landlords is to focus on what’s confirmed and what it actually means for you. We can help put the changes into context, but it’s important to make decisions based on what you know, rather than what you’re hearing.”
Speculation can shift from week to week in the run-up to a Budget, but confirmed policy does not. Landlords who separate the two can make decisions based on the information available rather than reacting to every new headline.
Even with tax changes on the horizon, the underlying rental market across Richmond, Twickenham and Teddington continues to attract interest, particularly for well-located homes close to transport links and good schools.
The Budget may affect landlords' costs and planning, but it does not by itself determine rental demand. Local factors such as supply, rents, employment, transport links and the availability of suitable properties continue to influence the market.
Michael Peacock adds:
“We’re still seeing good levels of interest from tenants, particularly for the right properties in the right locations. The tax position may influence what landlords decide to do, but so does the performance of the property itself and the demand we’re seeing locally. For anyone considering their next move, it’s worth looking at both sides before making a decision.”
For landlords considering bigger portfolio decisions over the next year or two, understanding both the confirmed tax changes and the areas of uncertainty will be increasingly important.
With speculation building ahead of 28 October, a few things can help landlords stay grounded and avoid making decisions based on headlines alone.
Plan around legislation that is already in place, including the new property-income tax rates coming in April 2027.
Treat other proposals – including possible changes to the High Value Council Tax Surcharge threshold and Capital Gains Tax – as developments to monitor rather than assumptions to build into a decision before they are confirmed.
If your property is close to the £2 million mark, keep an eye on both the final design of the High Value Council Tax Surcharge and the Government's valuation exercise ahead of its planned introduction in 2028.
The current proposals are based on property values assessed through the Government's valuation process, so landlords with higher-value properties should make sure they understand how the proposed system could apply to them.
Tax treatment depends on individual circumstances, so a conversation with an accountant or tax adviser is worth having before the Budget lands, rather than waiting until after an announcement.
This is particularly relevant for landlords with mortgage borrowing, multiple properties or plans to sell, as the tax consequences can vary significantly depending on their circumstances.
Whether you're holding, selling or restructuring, base your next move on your own financial position, current market conditions and confirmed policy rather than pre-Budget headlines that may not reflect what is eventually announced.
The lettings market across South West London will continue to be shaped by more than Budget speculation. For landlords, the Budget provides an opportunity to review plans and consider how confirmed changes may affect their portfolios.
At Chase Buchanan, we keep it straightforward. Clear advice, based on what's actually confirmed – not what might happen.
That means being upfront about the changes that are already legislated, honest about what's still uncertain, and practical about what it could mean for each landlord's individual situation.
Across Richmond and the surrounding boroughs, we stay close to landlords throughout the year, not just around the Budget. That means clearer information, quicker decisions and more confidence when considering what to do next.
In a market like this, it's important to understand the detail. That's made all the more easy by partnering with a trusted estate agency that stays consistent and gets the basics right.