Spring Statement 2026: What It Means for UK Landlords

The Spring 2026 policy picture included several measures that directly affect UK landlords. The headlines: CGT rates held; the PRS EPC C trajectory now points to 1 October 2030 with a £10,000 cost cap; Section 24 untouched; MTD ITSA proceeding on schedule. Here's a no-spin summary of what changed, what it means for your portfolio, and what actions (if any) you need to take in the next 6-18 months.

Capital Gains Tax: rates confirmed

The higher CGT rate on residential property disposals remains at 24% for higher-rate taxpayers and 18% for basic-rate taxpayers. The annual exempt amount stays at £3,000. No changes were announced, but there had been speculation about an increase — so the status quo is relatively good news for landlords considering selling.

What this means in practice: if you've been sitting on a portfolio property considering disposal, the maths today is the same as the maths yesterday. The Autumn Budget is the next decision point — historically Chancellors have used Autumn Budgets for the bigger CGT moves, so don't read “held in Spring” as “held permanently.” If you're within 12 months of a planned sale, talk to your accountant about acceleration vs holding through the next fiscal event.

EPC minimum rating: 2030 standard confirmed

The government response confirms that in-scope PRS homes must meet EPC C or equivalent by 1 October 2030, with no separate earlier new-tenancy deadline. A cost cap of £10,000 per property applies. If your property currently rates D or below, you should start planning improvements now to spread the cost.

The £10,000 cap matters: it means you don't have to spend unlimited amounts to comply. Once you've spent £10k on relevant energy efficiency improvements, you may be able to register a cost-cap exemption if the property still falls short. But it also means: budget up to £10k per property between now and 2030 if you want to be sure you're covered. For a 5-property portfolio that's £50k total, ideally split across the next few financial years.

Stamp Duty Land Tax: surcharge unchanged

The higher rates for additional dwellings, which add 5 percentage points to each band, remain in place. They rose from 3% to 5% on 31 October 2024. First-time buyer relief returned to its normal level on 1 April 2025: 0% up to £300,000 and 5% from £300,001 to £500,000, with no relief above £500,000.

Worked example: a £250k buy-to-let in England pays 5% on the first £125k (£6,250) and 7% on the next £125k (£8,750), totalling £15,000. If you're buying via a limited company, at least the same higher rates apply — the company structure doesn't escape SDLT, only the post-purchase Section 24 treatment. See HMRC's current rates.

Making Tax Digital: no threshold change yet

MTD's £50,000 qualifying-income threshold for the April 2026 start remains. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028; the £20,000 step is set in law by the Income Tax (Digital Obligations) Regulations 2026. Qualifying income is gross self-employment plus property income, not rental profit.

If your qualifying income is between £20,000 and £30,000, April 2028 is your start date. Use the time to build digital record-keeping habits now. See HMRC's guidance.

Mortgage interest relief: no reversal

Section 24 (the restriction of mortgage interest relief to a 20% tax credit) was not revisited. Hopes among some landlords for a reversal were not met. The basic-rate tax reduction on finance costs remains the rule for individual landlords; limited companies continue to deduct mortgage interest as a business expense. Separately, the November 2025 Budget set new property income tax rates from 6 April 2027 (22%, 42% and 47%), and the finance-cost reduction will then be given at 22%.

This was the most-anticipated “maybe” in the run-up — landlord lobbying groups had been making the case for a partial unwind, particularly for higher-rate taxpayers who are net tax-payers on mortgage-heavy properties. The silence in the statement is effectively a no. For higher-rate taxpayers paying more than they receive after Section 24, the incorporation arithmetic is still worth running with your accountant — but factor in the £10k+ Stamp Duty hit on transferring properties to a limited company before deciding.

Energy efficiency grants

No universal landlord EPC grant replaces the need to budget. Existing routes still matter: the Boiler Upgrade Scheme can support heat pumps, ECO4 runs until 31 December 2026 for eligible households (the Great British Insulation Scheme closed on 31 March 2026), and local authority schemes vary by area. Check current GOV.UK and council guidance before assuming a subsidy applies.

Practical maths: if you have a D-rated property, treat grant funding as upside rather than the base case. Get an EPC recommendation list, price the measures, record quotes and invoices, and track qualifying spend against the £10,000 cap.

Renters' Rights Act: brief mention

The Renters' Rights Act is now being implemented in stages. Phase 1 took effect on 1 May 2026, including abolition of Section 21 no-fault evictions, conversion of ASTs to assured periodic tenancies, new/reformed Section 8 grounds, rental bidding rules, and rent-increase changes. Later PRS database, ombudsman, Decent Homes Standard, and Awaab's Law measures follow separate timelines.

What to do now

Five concrete actions worth taking in the next 6 months:

• Check your EPC ratings — if any properties are D or below, get quotes for insulation, boiler upgrades, or window improvements. Spread the cost across two financial years if you can. Track quotes in your document vault.
• Budget for MTD — if you're between £30,000-£50,000 income, you've got until April 2027 but should start keeping digital records now. See our complete MTD guide for the prep checklist.
• Review CGT exposure — if you're thinking about selling, the 24% rate is stable for now but could change at the Autumn Budget. See CGT on rental property for worked examples.
• Track funding routes — check BUS, ECO4, Great British Insulation Scheme, and your local authority before committing to retrofit spend.
• Re-run incorporation maths — Section 24 holding firm means the limited-company alternative is still relevant for some landlords. See limited company buy-to-let guide + incorporating an existing portfolio.

Related guides

• Making Tax Digital for Landlords: complete 2026 guide
• UK landlord compliance checklist
• Renters' Rights Act deep dive
• Improving rental property energy efficiency

This is news commentary, not financial advice. Speak to a qualified accountant for your specific tax situation.