A change in tax treatment of landlords by the Welsh government has been criticised as “baffling” by the National Residential Landlords Association (NRLA).
In the Welsh government’s draft budget for 2025/26, a 1% hike was announced in the land transaction tax or LTT.
This is a tax rate fully devolved to Wales and its government with the latest rise to take place with immediate effect.
The Welsh government estimates that this change will generate LTT receipts of £338m.
At the minimum band, for properties up to £180,000 this will see LTT increase from 4% to 5%. The highest property band, which starts from £1.5m in value, will carry an LTT rate that has increased from 16% to 17%.
NRLA CEO Ben Beadle has been critical of this move and its potential implications for the private rented sector in Wales.
“To discourage investment in the market with punitive taxation, at a time when Wales needs many more homes for rent, is a frankly baffling move,” said Ben.
“Today’s announcement will worsen the ongoing shortage of homes, narrow tenant choice, increase rents and cause misery for tenants."
