Budget Day 2026: what does it mean for property investors and private landlords?
- Build more homes
- Speed up housing construction
- Make room for investors in the mid-market rental sector again.
These are key messages from the Speech from the Throne and the Budget Memorandum presented on Budget Day 2026.
For property investors and private landlords, developments concerning property transfer tax, Box 3, mid-market rents and the housing valuation system (WWS) are particularly relevant. At the same time, it is clear that the government is looking beyond the existing housing stock, placing considerable emphasis on new construction, redevelopment and better use of existing buildings.
What do these plans mean for you as a property owner? Riva Rentals breaks them down for you.
Build more homes and issue permits faster
Housing construction once again features prominently in government policy. A total of € 7 billion will be made available for housing construction through 2035. There will also be investment in infrastructure, and municipalities will receive financial incentives to develop affordable homes.
The government particularly wants to build faster. The announced Housing Construction Acceleration Action Plan is expected to deliver dozens of concrete measures this autumn. Industrialised and prefabricated construction, the conversion of existing buildings, adding extra storeys and other forms of densification are also being considered.
This could be interesting for private property owners. If, for example, you own a building that could be subdivided, extended or converted, this fits the broader move towards making better use of existing property. However, this does not automatically mean permits will become easier to obtain or that every proposal will be approved; municipalities will continue to play an important role.
The mid-market rental sector continues to evolve
Mid-market rents remain an important issue. The government wants to prevent a further decline in investment in rental housing and is therefore making € 500 million available for a property-based subsidy for mid-market rental homes.
This matters to investors because the mid-market rental sector sits at the intersection of affordability and returns. The question is not only how much rent you can charge, but also whether the return remains sufficient after financing, maintenance, sustainability improvements, taxes and rent regulation. The WWS continues to change as well. Several adjustments are being prepared for 2027, including changes concerning the WOZ cap, listed buildings and outdoor space. For landlords, a change in the number of points can directly affect the maximum permitted rent under a new tenancy agreement.
For existing and new investments alike, it therefore remains important to regularly check a property’s WWS points and the corresponding maximum rent.
Property transfer tax for investors to fall to 7%
One of the most concrete tax measures is the proposed reduction in property transfer tax on homes that buyers will not occupy themselves. From 2027, the rate would fall from 8% to 7%.
For a property worth € 300,000, that represents a difference of € 3,000. For larger property transactions, the impact could of course be greater.
The measure is intended to make investment in rental homes more attractive. Investors considering a purchase would therefore be wise to review the timing of the transaction and the total acquisition costs. The reduction is currently still part of the 2027 Tax Plan and has yet to be considered by parliament.
Box 3 remains a major issue
For private landlords, developments concerning Box 3 are probably at least as important.
The government is working on a new system in which actual returns on assets will play a greater role. For property, this means that rental income and changes in property values, among other things, may become relevant to taxation. Work is also continuing on the details of a capital-gains-based system. However, the exact design of the future tax regime has not yet been finalised. It is therefore too early to determine what the current plans will mean for the return on an individual property.
What is clear is that property investors will increasingly need to consider the tax treatment of rental income, changes in property values, maintenance and financing when making investment decisions.
Sustainability improvements remain important
Alongside the Budget Day measures, improving energy efficiency remains a major consideration for landlords.
Stricter requirements are being developed for homes with an energy label of E, F or G. Subsidies are also available for private landlords who improve the energy efficiency of their properties.
This makes the energy label relevant not only to tenants’ comfort and energy bills, but also to the future viability and financial position of your property. If your portfolio includes homes with low energy ratings, it is wise to assess in good time which improvements are necessary and how they will affect returns.
Not just conventional homes: housing for older people and students too
The government is also investing in specific forms of housing. Additional funding will be made available for homes for older people, as well as investment in accommodation for students and other priority groups. This reflects a broader trend in the housing market: housing demand is changing. An ageing population, the need for student accommodation and growing demand for affordable homes mean that not every property will have the same future.
For investors, it may therefore be worthwhile to consider not just the present use of a building, but also potential future housing concepts.
What does Budget Day 2026 ultimately mean for you?
Budget Day will not change every landlord’s day-to-day operations overnight. But the direction of government policy is becoming increasingly clear.
The government wants to build more homes, accelerate construction and improve the investment climate for mid-market rental housing. At the same time, rent regulation, the WWS, energy efficiency measures and the tax treatment of property continue to evolve.
For you as a property owner, this means it is increasingly important to look beyond your home’s current rent and market value. Its energy label, WWS points, financing costs, tax position and possible opportunities for extensions or conversion also determine how attractive it will be as an investment in the future.
Budget Day 2026 therefore provides a sense of direction above all. The precise consequences for your property portfolio will depend on how the announced measures are developed and considered by parliament. For property investors, the key is to continue monitoring developments closely in the period ahead.