Emma Cox, managing director of real estate at Shawbrook: “While the government has announced a 2% tax increase in property income, most professional landlords operating via a limited company will be breathing a sigh of relief that rumoured, punitive changes were not announced.

“Though economic uncertainty and market volatility have posed challenges over the past 12 months, landlords have proven themselves to be agile and able to withstand pressures.”

Darrell Walker, group sales director at Chetwood Bank for ModaMortgages and CHL Mortgages: “Politically, it’s easy to target landlords when seeking to increase tax receipts, yet excessive tightening of regulation and taxation on landlords’ risks creating negative knock-on effects for the rental market. It can place upward pressure on the rental market, either because existing landlords have higher costs to manage, or because it disincentivises new landlords from entering the market.

“Nevertheless, with the announcements now clear, landlords, investors, buyers, and brokers can properly assess the details and make better informed decisions. This clarity should help release pent-up demand, and we expect market activity to pick up in the coming months and into the new year.

“Council Tax reform is long overdue, though today’s changes introduce some added complexity and cost for landlords operating in the highest-value parts of the market. With many landlords already navigating several recent policy shifts, it is reassuring that more extensive reforms were not introduced, helping preserve some sense of stability in the private rented sector.

“What’s more, with the Council Tax surcharge applying only to properties valued above £2m and not set to be implemented until 2028, the majority of landlords are unlikely to be significantly affected in the short to medium-term.”

Becky Owen, head of funding at Leonard Curtis: "The decision to increase the rates of income tax from property income is of course unwelcome to landlords —coupled with the Renters Rights Bill and the associated increase in compliance and other costs, landlords have shouldered extensive changes during the last 12 months.

“However, challenge always brings opportunity and while some may choose to exit the sector, we know there remains a resilience in the market in terms of good operators delivering a vital service to millions of tenants."

Mark Harris, chief executive at SPF Private Clients: “This Budget is a final nail in the coffin for landlords owning property in their own name.

“It is very hard to make a profit unless property is owned via a limited company structure. We have seen a growing number of clients either purchase investment property via this route or move existing portfolios in their own name over to a limited company structure and we now expect this trend to escalate."

Jason Tebb, president at OnTheMarket: “The additional tax on rental income is disastrous for landlords.

“After a decade of being squeezed by mortgage interest relief cuts, wear-and-tear allowance removal, SDLT surcharges, fiscal drag, and endless red tape, this move further erodes net yields, especially for highly leveraged landlords.

“This reform will simply see more and more landlords removing themselves from the PRS sector for a further squeeze on rental supply.”

Rachel Geddes, strategic lender relationship director, Mortgage Advice Bureau: "The lack of updates around BTL in today’s Budget actually provides stability and positivity for the landlord market — a much-needed change given the amount of uncertainty they have faced as of late.

“The good news is that lenders are stepping up to support landlords in this space. They’re constantly innovating to facilitate this shift, helping property owners to expand their portfolios efficiently and refinance their existing loans to manage costs.”

Steve Cox, CCO at Fleet Mortgages: “Instead of the widely anticipated announcement of National Insurance being levied on landlords’ rental income, the Chancellor has instead decided to increase basic, higher and additional property income tax rates from April 2027. This means landlords will now pay 22%, 42% and 47% from that date, and this is anticipated to raise £0.5bn every year from 2028-29 onwards.

“It means landlords will once again see their incomes squeezed, at a time when costs continue to rise, and the introduction of the Renters’ Rights Act was already adding further costs to landlords next year, all of which are likely to be passed on to tenants in the form of higher rents.

“Add in this income tax increase to all the extra costs and responsibilities, and again landlords are going to see their margins on properties under further pressure. It is far too early to say how this will impact supply within the PRS, but of course it will require a reassessment by landlords and we are likely to see rents being reviewed in order to maintain profits.

“I think we can be fairly certain that this decision will move landlords even further towards using corporate vehicles for their portfolios; our most recent Rental Barometer already showed 81% of all mortgage applications we received were from limited company borrowers, and the direction of travel now looks likely to move even further towards this.”

Jonathan Stinton, head of mortgage relations at Coventry Building Society: “Hiking property income tax won’t just hit landlords – it will hit renters in the pocket too. When the cost of being a landlord rises, those pressures almost always find their way into monthly rents — meaning those who don’t own a home pay the price. A similar rise to tax on dividends means the cost will also go up for landlords who hold their property in a limited company.

“The more landlords are taxed the less appealing it is to let a property — which could lead to fewer landlords and reduced choice for landlords. The simple but powerful forces of supply and demand would then push rents higher, making it much more difficult to rent a home. First time buyers who are trying to save a deposit while renting could especially struggle and worry that their homeownership dreams are pushed even further out of sight.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman: “Mansion tax change seems more political than anything bearing in mind the relatively little additional revenue to be raised and the likely deferred payment date. As a result, the impact on housing market activity will probably be minimal at worst.

"However, I wish the government luck trying to re-value all those properties and dealing with the arguments around the ‘pinch points’. As a result, the cost of the exercise could turn out to be higher than the extra sums making their way into Treasury coffers.

"As is often the case when attempting to analyse the Chancellor’s words on these occasions — it’s just as important what she says as what she doesn’t say."

Hugo Davies, chief capital officer and managing director for mortgages at LendInvest: “This is another tough Budget for landlords and property investors, with higher taxes on rental income, capital gains and pension contributions.

“It will squeeze returns for many smaller, individual landlords. But it will also accelerate a trend we’ve seen for years: the shift toward larger, professionalised BTL operators and portfolio landlords, whose structures are far more resilient to government tax changes.”

Scott Clay, director at Together: “Confirmation of the mansion tax is really concerning to see. This is essentially an unfair 'privilege' tax for homeowners with properties worth £2m plus, who will now have to pay an annual charge, for the home they already own.

"If the goal was to make winter feel even harsher, mission accomplished.

“Many recent buyers have already paid for the property, plus stamp duty, and now face an extra annual surcharge on top of council tax and mortgage payments. It’s unlikely the government will carry out any affordability checks, so lenders will need to factor this additional cost into mortgage assessments for homes above the threshold.

“Those hit hardest will be ‘empty nesters’ and people who bought their property decades ago simply as a family home, not as an investment. Asset-rich but cash-poor older homeowners could really struggle, as this tax could be equivalent to an entire year’s state pension.”

Nick Sanderson, CEO at Audley Group: “Opting to play with taxes at the top of the housing market is inherently risky. The top of the ladder is often the driver of market movement and the new mansion tax will undoubtedly put the brakes on.

“Larger family homes become immediately less appealing to prospective buyers, particularly in areas where house prices have grown significantly like the South East.

“The government had an opportunity to get the housing market functioning as intended. Instead, it has introduced counterproductive barriers which will lock up valuable housing stock, reduce transactions and put yet more pressure on the housing market.”

The Office for Budget Responsibility (OBR) has accidentally published its forecast for the public finances and the UK economy ahead of Rachel Reeves’ Budget announcement at 12:30.

The OBR has released a statement apologising for the leak and announcing that it will launch an investigation into what it called a “technical error.”