Welcome to Tedworth Property
Like many things in life, the waiting and anticipation is often far worse than the actual event, and this was certainly the case with the much anticipated budget – to a large extent, all rather an anti-climax. With reference to the prime London property market, there were two key headlines of note;
The first being the introduction of a new High Value Council Tax Surcharge, or “Mansion Tax” on properties worth £2 million or more. The surcharge, which will be introduced from April 2028, is payable by the homeowner and will be paid in addition to any existing council tax. Properties will be valued by the Valuation Office which in itself creates a lot of questions…one for another day.
Secondly, from April 2027, there will be a 2% increase on property incomes taxes, meaning a tax rate of 22%, 42% and 47%, depending of course on whether the income falls into the basic, higher or additional rate tax bands.
Whilst not a disaster, taking into the account the reduced margins and increasing costs, alongside the Renters’ Right Act coming into play in 2026 (see below for our update on this…) this measure could have a negative effect encouraging landlords potentially to withdraw from the sector altogether. Less supply and continuing demand means only one thing – the potential for an increased in rents, which for tenants, is the last thing they want to see.
Notwithstanding these two headlines, the fact that everyone can now stop discussing the budget and “will she, won’t she”, is very good news. Irrespective of one’s political views, the certainty that has been provided ensures everyone has clarity which is the one thing the prime market craves most, and we expect now in the weeks leading up to Christmas to see a steady flow of sales.
If you would like further information or would like to discuss any property related matters, please do reach out to one of the team. As always, we would be delighted to help.
The Renters’ Rights Act | An Update
Following on from our update in last month’s newsletter, it has been confirmed that 1 May 2026 will be the implementation date for the bulk of the reforms under the Renters’ Rights Act. From this date:
- All tenancies will become periodic (rolling from month-to-month)
- Tenants will have the right to end their tenancy by serving two months’ notice at any time. Landlords will need to seek possession through service of a Section 8 notice using one of the prescribed grounds
- Rent increases will be limited to once per annum, in line with market rents and through service of a Section 13 notice, giving at least two months’ notice
- Rent in advance will be restricted – meaning no rent can be demanded before tenancy agreements are signed and a ban on upfront payments
- Tenant’s will have the right to request to keep a pet in a property, with landlords not able to unreasonably refuse consent
- Local authorities will receive new investigatory and enforcement powers. There will be revised and increased penalties for landlords for non-compliance
Full guidance can be found on our website, and please do not hesitate to reach out should you have any queries as to how the Renters’ Rights Act might affect you, as either a Landlord or Tenant.
