The November Shake-Up: What Smart Investors Should Do Before the Budget

Good morning,

The rules of the game are changing — again.

From a new annual property tax to National Insurance on rental income, this Budget could quietly cost landlords thousands a year.

Smart investors aren’t waiting for the announcement, they’re already adjusting. So today were covering grounds and keeping you in the loop.

Let’s dive in.

In this newsletter, you'll find...

• This Week’s Biggest News…….

• The November Shake-Up: What Smart Investors Should Do Before the Budget

• Property Listings

• Bottom Line

• What's Next?

• Feedback

This Week’s Biggest News…….

1.  61% of landlords plan to increase rents in the coming year. That sounds like a lot, but it’s down from 78% last year. Combined with other data we’ve seen lately, it looks like the spike is over and rents will now level off.

2. Rent caps are coming to Scotland, with the passing of the Housing (Scotland) bill. They won’t apply nationally, but the government can choose to apply inflation-plus-1% caps to parts of the country that need it. There’s a carve-out for Build To Rent property – which is pragmatic, but feels like a bloody cheek.

The November Shake-Up: What Smart Investors Should Do Before the Budget

On November 26th, Chancellor Rachel Reeves will unveil what could be the most transformative property budget in decades, one that could redefine how investors build, hold, and grow wealth in the UK.

The Treasury faces a £40–51 billion deficit.

With pledges not to raise income tax, VAT, or National Insurance for working people, the spotlight has turned firmly onto property investors.

Here’s what’s coming and most importantly how to stay ahead of it.

Three changes that could impact investors:

1. The 8% National Insurance on Rental Income

The proposal: An 8% National Insurance levy on rental income up to £50,270, and 2% above that.

That means landlords earning £50,000–£70,000 could face an extra £1,000+ tax bill every year.

This is important.

Because this could quietly become one of the biggest profitability shocks since the 2017 mortgage relief changes, trimming rental yields by as much as 10%.

It’s not a reason to panic, investors who are running a lean portfolio and know their margin, strategy always prevails.

2. From Stamp Duty to Annual Wealth Tax

The proposal: Replacing a stamp duty with an annual property tax on homes valued above £500,000.

This shifts us from a one-off transaction cost to an ongoing annual charge, changing how ownership and long-term investment will feel in Britain.

This could raise over £9 billion a year for the government, but it also reshapes investor psychology. It rewards long-term holds and could cool speculative buying at the top end of the market.

What about properties valued below £500,000?

Well, that’s still to be confirmed, but my view is that homes under this threshold will likely continue paying stamp duty.

It feels like a progressive approach, designed to raise billions while appearing ‘fair’ targeting wealthier homeowners and investors without placing extra pressure on the average buyer.

3. The Mansion Tax Returns

The proposal: A Capital Gains Tax on primary residences sold above £1.5 million.

With average gains around £836,000 on these properties, higher-rate taxpayers could face six-figure CGT bills.

But before you panic, remember this targets just 120,000 homeowners.

It does signal one thing and that is the government is moving toward taxing held wealth, not earned income.

What investors should know

Whenever we see such changes and introductions, its always good to see what history has shown us in the past.

And the last time we so changes that had such impact was back in 2017 when mortgage interest relief was scrapped.

What happened?

1. Smaller landlords exited

2. Rents rose

3. Limited company structures became the norm

Every major tax change triggers the same pattern.

Panic >Pause >Opportunity.

We’ll likely see same again, so don’t panic. The 2017 shift made some landlords quit. The strategic ones built limited companies, scaled up, and thrived.

Strategic Implications for Your Portfolio

If you already own:

• Run cash flow models to see how an 8% levy affects your returns.

• Review properties near the £500k threshold, timing could matter.

• Consider accelerating any sales or purchases before November 26th.

If you’re looking to buy:

• Northern cities like Liverpool and Manchester (8–9% yields) look increasingly attractive.

• Holding long-term and focusing on yield-rich, growth-backed areas may be the smarter play.

If you own high-value property:

• Assess whether selling before the Budget makes sense.

• Explore trust or company structures to preserve flexibility.

Property Listing

Bottom Line

This Budget could reset the property game for the next decade.
Those who plan before November 26th will have clarity while everyone else reacts.

Don’t get caught on the back foot, data rewards the prepared.

What’s Next?

Your Action Plan

Before the Budget:

• Stress-test your portfolio against the three proposed changes.

• Identify assets near the £500k and £1.5m thresholds.

• Run “what if” models to see how yields and equity shift post-tax.

After the Budget:

• Move quickly - the best opportunities always appear in the fog of uncertainty.

• Rebalance your portfolio if regional or structural advantages emerge.

• Keep your strategy data-first, emotion-second.

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