Higher landlord taxes mean higher rents - NRLA

Higher landlord taxes mean higher rents – NRLA

Red balloons linking landlord tax rises to higher rents for tenants
9:15 AM, 14th May 2026, 3 weeks ago 10

Tax rises affecting landlords which are due next year, could feed through into higher rents for tenants already under pressure.

The warning comes from the National Residential Landlords Association, which found that 46% of landlords plan to increase rents over the next 12 months because of the changes.

That’s because, from April 2027, income tax rates on property income will rise by two percentage points, following an announcement in last autumn’s Budget.

The poll also found that 35% of landlords expect to raise rents by more than they had previously planned, while 33% said they intend to sell one or more properties as a result of the tax rise.

Look in the mirror

The NRLA’s chief executive, Ben Beadle, said: “If the government is serious about easing cost of living pressures, it needs to look in the mirror.

“To be increasing the cost of providing rental housing, whilst keeping housing benefit support frozen, simply makes no sense.

“Renters will be left picking up the bill for the Chancellor’s tax hikes.”

He added: “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.”

OBR points to tax issues

The Office for Budget Responsibility has previously warned that the policy would lead to higher rents.

Housing Minister Matthew Pennycook has also recently admitted that tax increases by the last government were the main driver of landlords selling properties.

The NRLA says taxes on landlords have grown further under the current government.

The issue comes as housing benefit remains frozen, leaving tenants who rely on support to access the private rented sector facing tighter budgets and greater difficulty sustaining tenancies.

The Institute for Fiscal Studies has warned that the government’s tight fiscal position is ‘no excuse for a system that creates uncertainty for renters and unfairness between local areas’.


Share This Article

Comments

  • Member Since February 2016 - Comments: 982 - Articles: 1

    10:11 AM, 14th May 2026, About 3 weeks ago

    Hopefully Rach from Complaints will be gone by then.
    Hopefully the whole Liebour will be gone.
    But God forbid Red Angela becomes the PM…

  • Member Since April 2023 - Comments: 1

    10:51 AM, 14th May 2026, About 3 weeks ago

    Reply to the comment left by Whiteskifreak Surrey at 14/05/2026 – 10:11
    It’s crazy , do they not realise we have to make a profit , I used to increase my rent perhaps every 3 years and not a massive jump , from now on I will be increasing it every year , I’m sure most land lords will be doing the same

  • Member Since April 2017 - Comments: 166 - Articles: 1

    4:23 PM, 14th May 2026, About 3 weeks ago

    Reply to the comment left by Garry Salmons at 14/05/2026 – 10:51
    From taking a very lax attitude to Rent rises when I heard Rent’s controls might be coming in we moved to making sure we raised Rent’s modestly every year. As it is well known that Rent controls do not work anywhere this was essential sadly.

  • Member Since October 2022 - Comments: 218

    5:25 PM, 14th May 2026, About 3 weeks ago

    Given the shortage of rentals on the market, renting will simply become the preserve of the best placed tenants that can afford it, i.e. two incomes or higher rate PIP claimants and clean credit record.

    All others will be sofa surfing, lodging with friends or family, or in emergency accomodation. Benefits or single income simply won’t cover the cost, so they just won’t be able to compete. It’s already happening.

  • Member Since September 2018 - Comments: 3596 - Articles: 5

    5:29 PM, 14th May 2026, About 3 weeks ago

    I will be increasing rents each year from now on without any exceptions. In all cases they will be slightly under MR, to show ‘goodwill’. It also act as a reminder that what I provide is actually a business service. If the government wants to make the sector ‘more professional’ and raise standards, it means the customer will ultimately pay.

    I am afraid that tenants (and sometimes landlords themselves!) easily forget that we all do this for a profit. We are not social housing providers. Whether we do this for income now, or as part of retirement planning, it is about the income. If it were an investment only, a property would sit empty – there would be no need for a tenant at all.

    Rent is determined by cost and profit. Just like Tesco when they sell apples, Hertz when they lease you a car and Jet 2 when they sell you a plane seat. The tenant is the customer and we are the service provider.

    Building insurance increases ever year (based on risk), contractor costs increase (NT tax/wage increases) and other things like SL are thrown into the mix (more tax).

    The higher the risk, the more tax in added, so the cost of provision increases.

  • Member Since September 2018 - Comments: 3596 - Articles: 5

    5:46 PM, 14th May 2026, About 3 weeks ago

    Reply to the comment left by Peter Merrick at 17:25
    …. the pressure is now on councils to work out HOW they encourage LL’s to take on those who present with increased risk, because clearly they have no ability to provide accommodation themselves. Promising and extra months rent is not going to cut it.
    Those new areas with Reform in control, are going to be pushing to stop the use/expansion of HMO’s and exempt accommodation provision (not just for asylum seekers). More needing a roof….
    Oh and full time boatie season is also just over the horizon so to make way for the next cohort, there is going to be a push to box tick and rubber stamp existing asylum claims to keep the lists down. Out of hotels and into the community, to make way for the newbies….

    The Sh*t show, takes an seemingly unending encore…

  • Member Since November 2022 - Comments: 8

    11:36 PM, 15th May 2026, About 3 weeks ago

    Reply to the comment left by Whiteskifreak Surrey at 14/05/2026 – 10:11
    Its George Osborne that started the attack with outrageous tory taxes on landlords and the austerity wrecking ball that shafted everyone. Its slimy to start preaching this as a leftie issue when it was the total bell ends on the right that opened a can of shite on all landlords in the first place. Nigel is going to make it 100 times worse as you will have the nightmare of landords that cannot afford their properties and tenants that cannot afford their rent. To avoid any doubt, I used to make good profit before the tories got in and Brexit, the continuation of attacks on Russia, the change to taxation and the austerity measures that wrecked every local.council made the property market significantly worse and I. Ake half what I used to whilst the energy cartels and banks are coining it.

  • Member Since August 2025 - Comments: 53

    8:20 AM, 16th May 2026, About 3 weeks ago

    Well it’s like green party saying landlords should make no profit. Well can working green party members and party leaders explain would they go to work for free or keep the prodpective tenants in thier house for free?. People don’t have a clue how economy works no profit no expansion,The case now be no money growth. If people have no money then no spending people with money buy luxury cars expensive building materials,household furniture, all this will loose trade and poverty will set in. Just wait and see?.

    Joe

  • Member Since August 2025 - Comments: 53

    8:26 AM, 16th May 2026, About 3 weeks ago

    Well it’s like green party saying landlords should make no profit. Well can working green party members a d party explain would they go to work for free or keep the prodpective tenants in thier house for free?. People don’t have a clue how economy works no profit no expansion,The case now be no money gfosth

  • Member Since November 2020 - Comments: 53

    6:29 PM, 16th May 2026, About 3 weeks ago

    I’ve heard generation rant saying “there is no downside to applying to rent tribunals” so go ahead – you might at least get six months delay. But they forget that tribunal decisions are public domain so I advise any landlords to Google potential tenants name and the word tribunal. Mine have just applied for third time !!

Have Your Say

Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.

Not a member yet? Join In Seconds


Login with

or

Related Articles