Tenants are set to pay for landlords’ increasing tax burden, according to new research of National Residential Landlords Association (NRLA) members.
Pegasus Insight polled 631 NRLA members to learn how they plan to adapt to upcoming taxation changes.
From April 2027, income tax rates on property income will increase by 2% as announced in last year’s Autumn Budget.
Nearly half (46%) of landlords plan to increase rents as a result of this.
Within this, 35% of landlords plan to increase rents by more than previously planned as a direct result of this tax change with 33% planning to sell one or more properties.
Ben Beadle, CEO at the NRLA, said that if the government wants to tackle cost of living pressures it “needs to look in the mirror.”
“Renters will be left picking up the bill for the chancellor’s tax hikes,” said Ben.
“The government needs to scrap plans that risk pushing rents higher and making it harder for people to find a home.
“And for those proposing rent controls as the answer, they do nothing to address the root cause of higher rents — rising costs and a chronic shortage of homes to meet demand.”
