Guaranteed Rent and the 2025 Budget: What the Income Tax Rise Means for Landlords Holding Property Personally

The Chancellor has confirmed a two-percentage-point rise to income tax on rental profits from April 2027. Basic rate climbs to 22%, higher to 42%, additional to 47%.If you hold property in your own name, your operating costs are rising again in a landscape that already feels fuller, more regulated, and more expensive.

The OBR has warned that continued tax pressure will reduce landlord returns and restrict supply. None of this makes being a landlord simpler, but it does mean you need to be more deliberate about how you manage income, risk and structure.

Guaranteed Rent as a way to secure your income

If you want to keep your property long term, removing volatility is the most effective way to control the impact of rising taxes.

Guaranteed rent does exactly that. Apex pays you 100 per cent of the agreed rent every month, with no management fees and no deductions. No arrears. No rent chasing. No empty periods eating into your margin.

This stability matters even more because Apex is the only private-equity-backed guaranteed rent provider in the UK. That backing gives us financial strength, the ability to scale, and the operational capacity to manage risk responsibly. It also means your rent is underwritten by a business with long-term capital behind it, not dependent on individual tenant income.

Our income stream is tied to government-backed temporary accommodation and supported housing schemes, not private tenancies. When you work with us, your rental income is linked to institutional contracts, not day-to-day household affordability. In a tightening market, that difference matters.

If the Budget has made you rethink how to protect your cash flow, we can talk you through exactly what your property would earn under a guaranteed rent arrangement.

Thinking about restructuring ownership to reduce exposure to the tax rise?

The new rates will push some landlords to consider transferring properties into a company or reviewing how their portfolio is held. That can make sense in certain situations, but it is not as simple as “move everything into a Ltd and save tax.”

Restructuring can trigger Stamp Duty and Capital Gains Tax. It can change your mortgage options. It shifts tax from your personal rate to corporation and dividend tax. For some landlords it works well; for others it barely moves the needle.

If you are considering a structural change, get proper advice. Apex works with specialist accountants and tax advisers who deal with landlord restructuring every day. We can introduce you to the right people so you can understand the numbers before making any decision.

Final note

The 2025 Budget adds yet another cost pressure for landlords holding property in their own name. Whether you want the stability of guaranteed rent or you’re exploring ways to restructure ownership, we can help you understand your options clearly.

Speak to us at propertyteam@apexhousingsolutions.co.uk or call 020 8906 0055.