Landlords could face possession and enforcement pressures
1 month ago | 1 comments
Government admits no assessment of burden facing landlords
9:45 AM, 30th July 2026, 4 weeks 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 May 2018 - Comments: 2455
1:25 PM, 3rd August 2026, About 3 weeks ago
Reply to the comment left by NewYorkie at 03/08/2026 – 10:33
I also know two other landlords who had similar mental health problems through not being able to get their properties back for more than a year even though they’d done nothing wrong, in one case with tens of thousands of pounds worth of damages, which was never recoverable.
Unfortunately, the bottom line is since the Labour Renters Rights Act every landlord and agent needs to do a far better job of screening tenants: Presumably the existence of the Money Claim Order will effectively be accessible as a public register of non-paying tenants that can be accessed by referencing agencies.
Any further thoughts on the Money Claim Order service are welcome: I’m interested.
How long do you have to wait from the point that the rent was due until you apply for the Money Claim Order? One month….two…three?
Member Since October 2013 - Comments: 19
9:56 PM, 17th August 2026, About 1 week ago
Reply to the comment left by Beaver at 30/07/2026 – 10:53
I don’t know about commercial property, but there are far more robust processes to get rid of a commercial tenant who does not pay.
I cannot see any cons for using the moneyclaimonline service. I’ve used it myself
Member Since October 2013 - Comments: 19
10:05 PM, 17th August 2026, About 1 week ago
Reply to the comment left by Beaver at 30/07/2026 – 11:19
I’ve used the moneyclaimonline service and found it to be excellent. It was a good few years ago. I had a tenant who declined to pay anymore rent after the first month. Despite several requests etc, she didn’t pay. After 2 months’ arrears, I used the moneyclaimonline requesting 2 months’ rent. She ignored it. Whoever you are taking the claim against has 1 month to respond: to either refute the claim in part, or fully or accept (and pay) the claim. She ignored it. After a month, I could go backonline once the deadline passed and get a CCJ against her. I repeated this for the next 2 months. Meanwhile the relevant section was working its way through. Here’s the good bit. The tenant now has 2 CCJs against. I could now go for an attachment of earnings against her as I had her employment details. The judge awarded £250/month to come out from her pay packet at source till the debt was paid. Here’s the problem: if people can behave with impunity, there is a sizeable portion of people who will do what they like. Having a CCJ against you is not a trivial affair. It will affect your credit score etc. I’m astonished that Landlords appear to not know about this avenue for recourse. Its an extremely useful tool and its a quicker way of getting a tenant to have to go to court to answer for their behaviour. If they don’t turn up – a default judgment is made against them. My advice – go for it every time.
Member Since May 2018 - Comments: 2455
8:53 AM, 18th August 2026, About 1 week ago
Reply to the comment left by Surrey Landlord at 17/08/2026 – 21:56
So what processes would you be using to get rid of a commercial tenant who does not pay?
Member Since December 2023 - Comments: 21
10:03 AM, 18th August 2026, About 1 week ago
Reply to the comment left by Beaver at 18/08/2026 – 08:53
I have not reached that point yet. But depends the reason. For non payment I ve been told that is simple but you can insure the rent or pay a lawyer. NRLA does offer that facility and can inform you the best procedure.
Member Since May 2018 - Comments: 2455
10:43 AM, 18th August 2026, About 1 week ago
Reply to the comment left by Jesus Diaz at 18/08/2026 – 10:03
So if the MCO service is so good and so easy as Surrey Landlord says, why is another route better for a commercial tenant? Surely a commercial tenant also needs a good credit rating?