Renters could face higher housing costs from 2027 after new research suggested landlords are preparing to pass on planned tax increases.
From April 2027, income tax rates on property income are set to rise by two percentage points, following measures announced in last autumn’s Budget.
A survey of National Residential Landlords Association (NRLA) members, conducted by Pegasus Insight, found that 46% of landlords plan to increase rents over the next 12 months in response to the changes.
Around 35% said they expect to raise rents by more than they had previously planned, while 33% indicated they may sell one or more properties as a result of the tax rise.
The findings add to previous warnings from the Office for Budget Responsibility (OBR), which has said the policy is likely to contribute to higher rental prices.
The housing minister, Matthew Pennycook, has said that tax increases introduced by the previous government have been a key factor behind landlords selling properties, with further tax pressure having been added under the current administration.
The comments come against a backdrop of ongoing concern within the sector about the impact of taxation on rental supply and landlord decision-making.
At the same time, housing benefit levels remain frozen in cash terms, leaving some tenants reliant on support facing increased pressure as private rents continue to rise in many parts of the country.
The Institute for Fiscal Studies has also warned that the current fiscal environment is “no excuse for a system that creates uncertainty for renters and unfairness between local areas,” highlighting wider concerns about inconsistency in housing support and affordability pressures across the rental market.
So a stealth tax on renters and worsening the cost of living for renters.
How many renters voted for this govt?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Yes MUGS
LOL
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
You are of course aware that the increase in TAX payable by private landlords was started in 2017 by the Tories, not by Labour.
I think it would be extremely disingenuous for you to blame Labour for running with the idea. Personally, I would love to hear the Chancellor say to someone “Well, your lot started it – we’re just tidying up after you!”
The problem is that the government is short of cash to meet the costs of the services we all need.
That’s because over the years, to buy your vote, the Right have offered us reductions in income tax which were supposed to be easy to pay for with cuts to those services.
However, due to the Credit Crunch, excessive Quantitative Easing, Brexit, Covid, Trade Wars, Real Wars, and finally the disruption caused by AI, the UK economy is on life support. The not so funny thing is that the Right blame the Left, but all of those things I listed are caused by right wing politics, either here or abroad or both…
The only way to pay for those cuts in income tax is to increase other taxes. Accountancy 101.
The Left are finally back trying to get things sorted. They have been at it for 2 years so far and have managed to make themselves look extremely foolish while actually doing a relatively decent job of it.
However, the Right are blaming ALL of the above on them. Mental!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
No one has seen a cut in income tax. Our tax allowance has been frozen for years. In any case every penning of income tax now goes to pay benefits and soon benefits will outstrip income tax. Increasing landlords’ income tax higher than anyone else is just another step in forcing landlords to sell up. Labour may have jumped onto the bandwagon started by the Tories but they certainly made it worse. Labour’s plan is to make private rentals unaffordable and force all private landlords out of the market. No idea who will house all those evicted tenants but Government won’t. Rayner if she returns as PM plans to introduce a land tax making every home owner a tenant of the state. Labour are looking extremely foolish because they are a bunch of fools. Lammy is just one excellent example.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
The promises that politicians of any party rarely make it to real life, no matter how well intentioned.
You mention benefits – do you know the current split for benefits?
URLs are not allowed, but might I recommend you try an internet search for: dwp benefit statistics february 2026
The stats are quite enlightening.
The biggest cost to the country in terms of benefits is people receiving their state pension – which they rightly deserve.
Unfortunately, the way the state pension was set up is a Ponzi scheme – that’s also worth an internet search.
The problem we have is that GDP has flatlined, which means that there isn’t enough money going into the Ponzi scheme. Also, the number of “investors” in the scheme has been forcibly reduced because of Brexit, etcetera.
So now we are left with the honourable responsibility of providing financial care for our elders and betters but without the money to pay for it, unless we raise taxes.
Combine that with the “triple lock” promise and basically the government’s finances are screwed.
The only solution is taxes. No ifs or buts. This is clear and obvious. But raising taxes is the hardest thing for any government to do.
However, if you have any suggestions that make fiscal sense, then I’m sure the Chancellor of the Exchequer would absolutely love to hear from you.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register