September News

This month, rumours about the future of Stamp Duty have been circulating around Westminster, Rachel Reeves is reportedly considering charging National Insurance on landlords, and the Renters’ Rights Bill continues its march towards Royal Assent. 

We’re here to help guide you through the biggest stories of the month. Before we get started, let's check in on the latest rental market performance data. 

All the best,

The Abacus Homes team

Property market performance in August 2025

Here’s what changed in the English rental market last month: 

• The average monthly price for a rental property dropped -1.1% from £1,496 in July to £1,480 in August 
• August’s average rent of £1,480 is up 3% compared to 2024 figures (£1,438)
• The average void duration rose to 15 days
• The base interest rate in the UK remained at 4%

Government leaks reveal review of Stamp Duty

Recent leaks from the government have revealed that Chancellor Rachel Reeves is currently evaluating a significant overhaul of the UK property tax system. This includes possibly replacing Stamp Duty Land Tax (SDLT) with a new national property tax on homes sold for over £500,000, and ultimately moving toward a local property levy to supplant council tax. 

No concrete plans have been announced, and no legislative changes have yet been enacted.

For landlords in the buy-to-let market, the prospect of Stamp Duty abolition might seem advantageous. However, these reforms, if implemented, would not eliminate property tax, only reshape it. A new levy, potentially annual or sale-based, would still apply, likely concentrating on higher-value homes.

At Abacus Homes, we advise caution: while upfront costs such as Stamp Duty may fall, tax liability would be redistributed, not removed. This could be an opportunity to expand your portfolio, but you should consider your choices very carefully.

Rachel Reeves reportedly considers National Insurance charges on rental income 

Labour insiders have told The Times that the Treasury is reportedly considering extending National Insurance contributions to rental income. This would be a major departure from the current exemption for landlord earnings. 

This proposal, under review ahead of the Autumn Budget, could generate approximately £2 billion annually, aimed at helping to plug a growing £40 billion fiscal shortfall.

In practical terms, this could mean that there would be an 8% levy on rental profits (the same rate usually applied to employee earnings), which would considerably eat into portfolio returns. 

Rest assured that as your letting agents, we’ll be following this story closely and keep you up to date with any official updates.

The latest Renters’ Rights Bill news

The Renters’ Rights Bill is moving forward as expected. Having completed its Report Stage in the House of Lords, it is now back in the Commons, where it is waiting for the consideration of the Lords’ amendments. The considerations stage is scheduled for September 8, and should proceed as planned. 

Assuming that there are no significant disagreements between the two Houses, the Bill is likely to receive Royal Assent in the autumn. The government is eager to get the Bill through before the Labour Party Conference starts on September 28. 

The Bill is expected to become effective in early 2026, giving landlords and agents time to prepare for the shift to periodic tenancies, new tenant protections, and other obligations imposed by the legislation.

As always, we’ll be on hand to help you through these legislative changes. Feel free to reach out to your agent if you’d like to discuss anything specific.