This Budget will push up rents. The Government's own forecaster has warned of the same risk.

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A week on from the Budget, the picture is clearer. Here's what's confirmed, what the Government's own forecaster says it means for rents, and what you can do about it.

The Budget confirmed a second two point rise in tax on rental profits from April 2027, and the Government's own independent forecaster says the measures risk a steady rise in rents.

What's confirmed

The Budget documents say it plainly: last year's Budget raised tax rates on property and savings income by two percentage points from April 2027, and this one adds a further two points from the same date. If you own personally, that's four points in total, taking rates on rental profits to 24%, 44% and 49%.

What the forecaster says

The Office for Budget Responsibility, the Government's independent forecaster, has said these measures risk leading to a steady rise in rents. Landlord groups read that as higher rents and fewer homes to rent, at a time when demand is already well ahead of supply. They call the double rise unjust and shortsighted, and point out that it sits awkwardly with the Chancellor's promise of a Budget focused on growth.

Some reassurance if you have a mortgage

Treasury officials have reportedly indicated that the tax credit landlords get for mortgage interest will rise to 24% as well. If that's right, the extra tax on a mortgaged property works out at about four points of your profit after interest, not your profit before it. That's good news for landlords who borrow, and it's worth checking against your own numbers.

What you can do about it

Landlord groups are urging landlords to write to their local MP. It takes a few minutes, and it puts the real impact on local homes and tenants in front of the person who votes on these measures.

What to do now

Work out what the new rates mean for each of your properties once April 2027 arrives. If you're buying, how you hold the property matters more than ever, and a limited company appears to be the best route, so speak to an accountant before you act.

The bottom line

The tax rise is real, and so is the warning that tenants will pay for it. But landlords who plan ahead, hold their properties the right way and invest where yields are strong can still make buy to let work, and that includes the North East.

Want to know what this means for your portfolio? Email landlords@nguhomes.co.uk and we'll talk you through the numbers.

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