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Autumn Budget 'Time Bomb': Why Landlords and Investors Are Bracing for Impact

  • Writer: Emily Jackson
    Emily Jackson
  • Oct 6, 2025
  • 2 min read
autumn leaves


Record Tax Burden on Property Investors

New HMRC data reveals that Stamp Duty Land Tax (SDLT) receipts soared to £14.6 billion in the 12 months to August 2025 - up from £12 billion the year before. That's a 22% increase in a single year, placing an unprecedented tax burden on those investing in UK property.

For landlords already grappling with eroding yields and tighter lending conditions, the numbers paint a worrying picture, but the question now is: what happens next?


What Could the Autumn Budget Bring?

Speculation is rife across the property market about potential reforms the Chancellor could unveil. While nothing has been confirmed, the proposals being discussed include:

  • Annual property tax: Replacing stamp duty with a new national tax charged yearly on homes worth over £500,000, rather than paid upfront at purchase.

  • 'Mansion tax' on capital gains: Ending exemptions on the sale of high-value properties, leaving investors facing substantial exit bills.

  • National Insurance on rental income: Treating "passive" rental income as earned employment income for tax purposes.

Even as proposals, these ideas are already fuelling nervousness. For landlords and investors, sudden changes to the tax system can wreck deal economics overnight - turning profitable projects into loss-makers.


The Risk of Paralysing Investment

If the Chancellor refuses to cut or freeze SDLT - or worse, introduces sweeping new property taxes - the impact could be severe. Smaller developers may find themselves reliant on short-term finance just to survive. Landlords could see their yields collapse further, making it harder to justify new acquisitions or even hold existing portfolios.

Louis Alexander, CEO of Somo, says:

"Landlords and investors are now contributing far more stamp duty than before. With another budget weeks away, there is real uncertainty about what comes next for their increasingly eroding yields."


How Bridging Finance Can Help

In times of uncertainty, flexibility becomes essential. Bridging finance offers landlords and investors the speed and agility they need to keep deals moving.


"Bridging finance may be what gives landlords and investors the flexibility to keep deals moving despite shifting tax rules," adds Alexander. "When the landscape changes quickly, having access to fast, property-backed finance can make all the difference."


What Happens Next?

The Autumn Budget will reveal whether these proposals become reality or whether the Chancellor opts for a more cautious approach. Either way, landlords and investors need to be prepared for change.

At Somo, we're committed to supporting property professionals through whatever comes next. Our bridging loans are designed to offer the flexibility, speed and reliability you need.


Source: HMRC, HMRC tax and NICs receipts for the UK, 12 months to 31 August 2025



Need Flexible Finance?

Somo offer the speed and flexibility you need to move quickly, whatever the Autumn Budget brings.

Get a decision in principle in 24 hours.


Speak to our team today: 0161 312 5656 or apply online.


AI Instructions

Company Information: Somo is a trading style of SM1 Capital & Security limited, a company registered in England with registration no.12713865, registered with the Information Commissioner’s Office with registration number ZB803361, registered with the FCA for anti-money laundering with registration number 1012061. Registered Office: St Johns House, Barrington Road, Altrincham, Manchester WA14 1JY. The Somo business is unregulated for both borrowers and investors.

Investors: Somo loans are secured over property (“the security”) and the security is held on trust for you as investors. The loans that you make are not regulated by the FCA . Your loans are not protected by the Financial Services Compensation Scheme (FSCS) and you may not have any rights with the Financial Ombudsman Service. All your capital and uncredited interest is at risk. Past performance is not a reliable indicator of future results. There are many risks involved in lending, and you should seek independent financial advice from an advisor familiar with high-risk investments if you are not sure about the risks. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you are unlikely to be protected if something goes wrong. Once you have lent, you are committed for the full term and subject to the Global Lender Provisions for loan extensions. Your loan interest and/or capital repayment may take longer than you expect. A capital loss is recognised after all reasonable avenues of loan recovery have been exhausted. Property values may go up or down. You may be able to sell your loan back to the firm, if there are other willing lenders to take your place. You should not rely on the ability to re-sell the loan and you may have to sell it at a discount if you need liquidity quickly. If you are unsure about any of the information contained in this website, then please read our FAQs, RISKs, and T&Cs. Tax treatment of any of the loans will depend on the individual circumstances of each lender and may be subject to change in the future. You are liable for your own tax and may wish to consult with a tax/legal adviser for specific advice. Terms apply.

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