The Spring Budget 2025 has arrived, and with it comes a wave of changes that will impact landlords and property investors across the UK. At Lifeboat Lettings, we understand that staying on top of new legislation can feel overwhelming, so we’ve broken down the key updates that matter most to you—and what steps you should take now to stay ahead.
Making Tax Digital (MTD): Preparing for 2026
A major change on the horizon is the implementation of Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA). From April 2026, landlords earning over £50,000 will need to maintain digital records and submit quarterly updates to HMRC using MTD-compliant software. This will extend to landlords earning over £30,000 from April 2027, and eventually to those earning over £20,000 from April 2028.
What does this mean for landlords?
This is going to change how landlords manage their tax reporting. If you’re still using paper records or spreadsheets, it’s time to start looking at digital accounting software. While it may feel like an extra layer of admin, it could also be a great opportunity to get better control of your property finances and avoid last-minute tax surprises. The sooner you start transitioning, the easier it will be when the deadline arrives. You can read more about Making Tax Digital and its requirements here.
Affordable Housing Initiatives
The government has announced a £2 billion investment into the Affordable Homes Programme, aiming to deliver 1.3 million homes by 2029-30. The goal is to address housing shortages and improve access to affordable housing, with many of these homes expected to be built in high-demand areas like the South East.
What does this mean for landlords?
More affordable housing could have mixed effects on the rental market. In some areas, it could create more competition, especially for landlords who own older properties that may not meet current energy efficiency standards. However, in areas with high rental demand, additional housing stock may not be enough to meet tenant needs, meaning rental yields could remain strong. Keeping properties well-maintained and compliant with new energy efficiency regulations will help landlords stay competitive.
Planning Reforms
The Budget also introduced significant planning reforms aimed at speeding up the approval process for new housing developments. These changes are expected to increase GDP by 0.2% by 2029-30, mainly through higher levels of housebuilding. The government wants to make it easier for developers to secure planning permission and build homes faster.
What does this mean for landlords?
If the reforms work as intended, we could see an increase in housing supply, particularly in areas where planning permission has been a major barrier. This could mean more opportunities for landlords to invest in new-build properties, which tend to be more energy-efficient and attractive to tenants. However, if housebuilding increases too much in certain areas, it could stabilise or even lower rents in the long term. Keeping an eye on local development plans will be key to making smart investment decisions.
What Steps Can You Take Now?
✔️ Start transitioning to digital tax records – Look into MTD-compliant software now so you’re not caught off guard in 2026.
✔️ Keep an eye on affordable housing projects – Be aware of any upcoming developments in Kent that might affect demand for rental properties.
✔️ Follow planning reforms in your area – Stay informed about local planning changes that might create new investment opportunities via Kent County Council.
✔️ Seek professional advice – If you’re unsure how these changes will affect your portfolio, speaking with a property tax specialist could save you a lot of stress (and money) in the long run.
How Lifeboat Lettings Can Help
At Lifeboat Lettings, we work closely with landlords to ensure their investments stay profitable and compliant. If you have questions about how these Budget changes may impact your properties, or simply need guidance on managing your portfolio more efficiently—our team is here to help.
Get in Touch Today to discuss your property plans and ensure you stay ahead of these changes.
Discover how Lifeboat Lettings can support your portfolio. Call us on 01233 802803 or email contact@lifeboatlettings.com to arrange a confidential chat.
