Government admits no assessment of burden facing landlords

Government admits no assessment of burden facing landlords

Illustration showing landlord tax hikes and Renters’ Rights Act reforms with no combined government impact assessment.
9:45 AM, 30th July 2026, 3 weeks ago 46

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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Comments

  • Member Since December 2023 - Comments: 21

    11:43 AM, 31st July 2026, About 3 weeks ago

    Reply to the comment left by DP at 10:37
    My heart falls for you.
    Protect Family Homes and Small Landlords
    The political class treats every landlord as a millionaire.
    But most landlords:
    Own one or two properties
    Rely on rental income as part of their pension
    Maintain homes the government failed to build
    Do not have offshore trusts or tax loopholes
    Yet their children face a 40% or more tax bill simply for inheriting a modest home.
    We demand a new category: “Essential Housing Assets”
    Homes and small rental properties should not be taxed as luxury wealth.

  • Member Since December 2023 - Comments: 21

    12:45 PM, 31st July 2026, About 3 weeks ago

    Reply to the comment left by Beaver at 11:20
    It does not need to be a law. There are landlords including myself who have negotiated with the tenants prior to the contract and allowed the pet but but the laws says that you cannot charge for any damage or even keep a deposit which is penalising the landlord and has to pass the expense to another tenant who chose not to have a pet. I understand is it is a guide dog but this are negotiations and it is for both to agree and negociate a fair compromise..
    A tenant living at the beginning of the corridor with an untrained dog will be barking every time some one passes by the door! which is extremely annoying to the other tenants.
    Take it to the extreme. Should a dog or dogs be allowed on the plane or in hospitals or in schools?
    I’ve just put it as the many law changes. Some tenants do want to leave on a dog free flat!

  • Member Since November 2022 - Comments: 12

    7:31 AM, 1st August 2026, About 3 weeks ago

    Reply to the comment left by Beaver at 30/07/2026 – 11:51
    I’ve used it in the past. It has worked and tenants have gone. Mainly because I said if they go I’ll not “actively” pursue the debt. However on a couple of occasions the tenant later on has asked to pay the debt so it’s registered as settled. Some you win some you don’t. But I’d use it again as it’s pretty effective.

  • Member Since November 2015 - Comments: 591

    12:51 PM, 1st August 2026, About 3 weeks ago

    Reply to the comment left by Beaver at 30/07/2026 – 11:19
    From my experience avoid the court bailiffs for service of any notices after judgement. They are slow and useless! They turn up during the working day, knock lightly on the door with a sponge and put your job to the bottom of the pile without ever serving your debtor.
    I ended up paying for a local private bailiff and he served using a ploy within a week or so and it wasn’t expensive. Money WELL SPENT. If your debtor is employed there are various ways to get a payment, but it could take forever at £10pcm and then they move house or job and stop paying so you have to start again. I did it mainly for the sake of being a nuisance rather than believing I’d ever see all the money again.

  • Member Since November 2015 - Comments: 591

    12:53 PM, 1st August 2026, About 3 weeks ago

    Reply to the comment left by Kevin Wade at 01/08/2026 – 07:31
    You’re right. Mine were serial offenders, but not everyone wants bad debts trailing them around and would rather pay.

  • Member Since October 2013 - Comments: 1713 - Articles: 3

    2:19 PM, 1st August 2026, About 3 weeks ago

    Reply to the comment left by Kate Mellor at 01/08/2026 – 12:53
    My tenant knew he was going to prison, so no point him paying rent. My eviction took 14 months and happened before his court case. Pointless chasing him for money!

  • Member Since July 2023 - Comments: 29

    7:39 PM, 1st August 2026, About 3 weeks ago

    Reply to the comment left by Beaver at 31/07/2026 – 10:59
    Bailiffs are eventually needed to get a trouble tenant out but not there to recover money. After my trouble tenant left I did the money claims online, tbh I can’t remember a lot of the process as I was left seriously mentally unwell through the whole thing. I got her out with a section 8 for non payment of rent, then found out she’d been claiming housing benefit and not passing it on. Why aren’t the council then going after her I don’t know but people treated me as the bad person after and she’s a poor renter. Hence the money claims to force any employer she has to take money straight out of her pay. I’m living rent free in her head now and to make the money back started a holiday let that makes similar to my 8 rentals combined. Only time it’s happened in 20 years of being a landlord, most of my tenants are amazing and we get on well.

  • Member Since May 2018 - Comments: 2436

    10:06 AM, 3rd August 2026, About 3 weeks ago

    Reply to the comment left by Mark W at 01/08/2026 – 19:39
    I’m sorry you had a problem with your mental health.

    Thank you for sharing your experience and also to Kate for the advice re private bailiffs versus court bailiffs.

  • Member Since April 2018 - Comments: 568

    10:26 AM, 3rd August 2026, About 3 weeks ago

    Reply to the comment left by Kate Mellor at 01/08/2026 – 12:53
    A Money Order may not work with a serial offender but at least a Section 8 gets them out of a property and a CCJ which should stop them re-offending.

  • Member Since October 2013 - Comments: 1713 - Articles: 3

    10:33 AM, 3rd August 2026, About 3 weeks ago

    Reply to the comment left by Mark W at 19:39
    I know what you went through because I had a similar eviction while I was suffering from covid, which caused me to retire. The stress allied to cognitive problems due to covid caused me to doubt my own abilities, having previously been in a highly stressful job with no problems. To highlight how badly this affected my mental health, I had no financial problems with what was happening. I just wasn’t thinking straight and had no one to support me.At one stage, I was even considering an offer by one of the neighbours who said the tenant was well known and could meet with an ‘accident’ in town one night!
    Perhaps the NRLA should offer support to landlords in such situations. I suspect there are a lot!

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