Autumn Budget tax hikes set to raise rents for renters

Increased costs for landlords in the Autumn Budget will push rents higher for tenants, claims mortgage lender.

A poll by mortgage lender Together suggests Chancellor Rachel Reeves’ decision to raise tax rates on dividends, property, and savings income by two percentage points in the Autumn Budget will force landlords to either raise rents or sell up.

The survey of 2,000 people found that 86% believe increased landlord costs will push up rents for already hard-pressed tenants, rising to 94% among Baby Boomers aged 61 to 79.

Will not only leave landlords out of pocket, but also renters

Ryan Etchells, chief commercial officer at Together, said: “In our experience, many of our landlord customers have chosen not to pass on increased costs to their tenants, instead absorbing extra payments associated with providing homes for tenants, which have been brought about by attacks on the private rental sector by successive governments.

“However, landlords with properties in their own names now face the taxman taking another sizeable bite out of their incomes thanks to Reeves’ rise in property income tax rates. The two percentage point hike will not only leave landlords out of pocket, but also renters. Our research shows that the public understands that the extra costs will fall to those renting their homes.”

He adds: “With all the regulatory, legislative and tax burdens of late (on top of the incoming Renters’ Rights Act) this will inevitably result in higher rents from next year onwards, and if landlords can’t make their portfolios work for them, they could be forced to sell-up altogether.”

Property118 commercial reality check

Selling is not a defeat. It is often a rational, controlled response to a tax environment that no longer respects private capital. Portfolio landlords who choose to reshape or partially exit are making a strategic decision to protect returns, stabilise cash flow and preserve long-term freedom.

What serious landlords should do next

Model the new tax impact with precision. Calculate how the two percentage point rise affects net yields over the next three years. Clear numbers help you judge whether holding, refinancing or selling delivers the strongest outcome.

Document and audit readiness. Organise valuations, tenancy schedules, mortgage data and maintenance records now. A tidy portfolio file speeds up refinancing, accelerates sales and improves negotiation strength.

Selective disposals. Some landlords will deliberately sell weaker or low-yield units to rebalance gearing and strengthen their balance sheet. Selling on your own terms is a sign of control, not retreat. If you are considering selling, it is worth reviewing this guide on calculating Capital Gains Tax before making any decisions: https://www.property118.com/why-every-landlord-should-calculate-cgt-before-selling-a-single-property/

Advantage through professionalism

Professionals choose their moves based on numbers, not noise. Selling, holding or reshaping can all be strong decisions when executed deliberately and backed by clean data.