Landlords could face possession and enforcement pressures
2 weeks ago | 1 comments
Government admits no assessment of burden facing landlords
9:45 AM, 30th July 2026, 3 days ago
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The government has confirmed it carried out no assessment of the combined impact of landlord tax hikes and Renters’ Rights Act reforms.
In a written parliamentary answer, Baroness Taylor of Stevenage said the government had made “no single assessment” of the cumulative costs landlords will face from the Renters’ Rights Act alongside planned tax changes.
No single assessment
In a written parliamentary question, Lord Truscott asked: “What assessment the government have made of the combined cost of new regulatory measures under the Renters’ Rights Act in addition to proposed tax increases for the average landlord”.
Baroness Taylor of Stevenage said: “My department has made no single assessment covering the combined cost of the measures in the Renters’ Rights Act and proposed tax increases.
“Last year’s Budget, the government announced a 2ppt increase to the rate of property income to be introduced from April 2027. This is to help narrow the gap between taxes paid on work and paid on income from assets. An assessment of this policy was published in a Tax Information and Impact Note.”
In the impact notice, it claims the 2ppt increase would be “negligible”.
It said: “By 2029 to 2030, 2.4 million landlords (6% of taxpayers in 2029 to 2030) will face an increase in tax as a result of this measure. Administratively, this measure will affect individuals (including partners in partnerships) with profits from property rental income. It is anticipated that both the one-off and ongoing administrative burdens for these individuals will be negligible.”
Hit renters and landlords
However, industry figures have previously warned that the combined impact of rising taxation and increased regulation could push more landlords to exit the private rented sector.
Jonathan Stinton, head of mortgage relations at Coventry Building Society, said: “Hiking property income tax won’t just hit landlords, it will hit renters in the pocket too. When the cost of being a landlord rises, those pressures almost always find their way into monthly rents, meaning those who don’t own a home pay the price.
“A similar rise to tax on dividends means the cost will also go up for landlords who hold their property in a limited company.
“The more landlords are taxed the less appealing it is to let a property, which could lead to fewer landlords and reduced choice for landlords. The simple but powerful forces of supply and demand would then push rents higher, making it much more difficult to rent a home. First-time buyers who are trying to save a deposit while renting could especially struggle and worry that their homeownership dreams are pushed even further out of sight.”
Sam Humphreys, head of M&A at Dwelly, said: “The rise in property income and dividends tax presents all types of landlords with yet another obstacle to adapt to at a time when they are already absorbing significant operational changes under the Renter’s Rights Act.”
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Baroness Taylor of Stevenage, landlord tax hikes, property income, Renters’ Rights Act, rising taxation
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Member Since December 2023 - Comments: 1644
8:49 AM, 30th July 2026, About 3 days ago
Increasing my tax by 10% is not negotiable. My tenants will pay more for their rent as a result.
I think the government simply anticipated that we would lose 10% of rental properties and needed to raise the tax rate to ensure the money still comes pouring in.
Member Since February 2025 - Comments: 2
9:03 AM, 30th July 2026, About 3 days ago
Surely, it’s not just the tax increase.what happens when a tenant can’t pay rent as a result of loss of income for whatever reason. Under the new regulations, how does a landlord recover this loss as tenants can’t be evicted until court hearing which may take months and tenant stays rent free until that time.
Member Since July 2013 - Comments: 2054 - Articles: 21
10:40 AM, 30th July 2026, About 3 days ago
Reply to the comment left by Shreedevi Chavda at 30/07/2026 – 09:03
In the past many landlords served a s21 notice, the tenant left as he/she knew there was no defence and the landlord wrote off several thousand pounds of rent.
What may/should happen now is landlords say to tenants who won’t/can’t pay:
“Unless you either surrender your tenancy promptly and leave the property in good order or else come up with a workable plan to pay me the arrears within a reasonable time, I will issue a Money Claim Online, and subsequent ones every time rent is not paid. I will apply to have any judgement registered against you. That will ruin your credit score. You will find it difficult to rent again in the private sector, to obtain a mortgage or to get a car on finance. I will also seek an attachment of earnings order from your employer.”
Member Since May 2018 - Comments: 2278
10:53 AM, 30th July 2026, About 3 days ago
Reply to the comment left by Ian Narbeth at 30/07/2026 – 10:40
That’s an interesting comment: Do you have any more details on how to issue a Money Claim Online and the pros and cons of going down this route versus the bailiff service? Presumably you can do this for both residential property and commercial property?
Member Since December 2023 - Comments: 1644
10:59 AM, 30th July 2026, About 3 days ago
Reply to the comment left by Ian Narbeth at 30/07/2026 – 10:40
You cannot purport to end a tenancy orally. I’d steer clear of such a suggestion.
A Section 8 Ground 8 might be the best way to open up negotiations.
Member Since October 2013 - Comments: 1681 - Articles: 3
11:01 AM, 30th July 2026, About 3 days ago
Reply to the comment left by Ian Narbeth at 30/07/2026 – 10:40
That is the behaviour cumulative government attacks on private sector landlords have caused.
I was very generous to tenants for 7 years, because I could afford to be. Then mortgage rates increased and one tenant stopped paying rent. He cost me in excess of £20,000 by the time he was evicted and I had fixed the damage he had caused. That was my entire profit in that property since I bought it. No more Mr Nice Guy!
Member Since October 2013 - Comments: 1681 - Articles: 3
11:05 AM, 30th July 2026, About 3 days ago
Reply to the comment left by Cider Drinker at 30/07/2026 – 10:59
Immediately they receive the S8, they will pay no further rent. That is likely to continue for maybe 18 months. How many landlords can afford that?
Issue the Money Claim Online and be done.
Member Since May 2018 - Comments: 2278
11:19 AM, 30th July 2026, About 3 days ago
Reply to the comment left by NewYorkie at 30/07/2026 – 11:05
So I can see that there is a link for the Money Claim Online service which is here:
https://www.moneyclaim.gov.uk/web/mcol/welcome
I have no experience of using it. Does anybody on here have any experience of how to make sure this works, pitfalls to avoid etc?
Member Since October 2019 - Comments: 426
11:39 AM, 30th July 2026, About 3 days ago
The government are not bothered about LLs and tenants well-being, they are after tax end of story!
Member Since May 2018 - Comments: 2278
11:51 AM, 30th July 2026, About 3 days ago
Reply to the comment left by LaLo at 30/07/2026 – 11:39
According to the article at the top of this thread the “Tax Information and Impact Note” or notice said that “….the 2ppt increase would be negligible.” It said “…this measure will affect individuals (including partners in partnerships) with profits from property rental income. It is anticipated that both the one-off and ongoing administrative burdens for these individuals will be negligible.”
The effect will not be negligible because non-incorporated landlords are not permitted to offset their finance costs against rents as a self-employed business or partnership can and interest rates have gone up: The only thing that the landlord can do to avoid financial loss is to increase rent so the effect of the measure is to push rents up: The measure will be visited on tenants and the effects will not be “negligible”; particularly so because many non-incorporated landlords are going to be obliged to push rents up to recover extra tax at the 40% rate.
But of course the quote from the notice above only referred to the “administrative burden”: And compared to the increase in tax rate the administrative burden of the Labour Renters Rights Act is massive and will really push rents up, especially so because the majority of landlords are small portfolio landlords.
Does anybody on here have experience of using the money claim service to pursue tenants for unpaid rent? Any experience to share?