Landlords aren’t working people, are they?
Labour promised not to increase taxes on working people, specifying income tax, National Insurance and VAT. It believes that pledge has been kept.
Yet from April 2027, property income tax rates are due to rise by four percentage points compared with today’s rates. For landlords in England, Wales and Northern Ireland, that means rates of 24%, 44% and 49%.
For mortgaged landlords who own property personally, the impact can be sharper. They cannot deduct residential mortgage interest from rental income before calculating taxable profit. Instead, they receive a tax reduction limited to the basic rate. That can leave landlords paying tax on “phantom profits”; income that has already gone towards the mortgage.
A recent snap poll of 168 NRLA members found that 73% planned to raise rents at the next opportunity following the announced tax increase. Those are intentions, not a guarantee, but they raise an obvious question.
If landlords are taxed more, who ultimately pays: landlords, tenants, or both?
Does Labour’s distinction between “working people” and landlords make sense to you?
Have your say below.
4 comments on this article
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Labour's tax hikes have trapped decent landlords
Member Since February 2020 - Comments: 410
10:18 AM, 13th November 2026, About 1 hour ago
Taxing any entity that is not a charity means the costs must be passed on to someone else.
This is the genius of Labours plans, the costs are passed on by the landlords. Many will not state that the costs are caused by the government. This will lead to more landlord hate. So Labour get their taxes, but the landlords get the blame, allowing for more landlord bashing.
Member Since September 2022 - Comments: 50
10:46 AM, 13th November 2026, About 1 hour ago
Reply to the comment left by Downsize Government at 13/11/2026 – 10:18
If Landlords were an ethnic minority we could report some posts against Landlords as a hate crime…
Member Since September 2015 - Comments: 1061
11:21 AM, 13th November 2026, About 26 minutes ago
Reply to the comment left by Downsize Government at 13/11/2026 – 10:18
…I’ve long advocated sending Tenants a statement showing how much rent they’ve paid and how much tax in total (i.e. the aggregate amount of Landlord income tax, VAT paid to contractors, etc) goes to the Government
Member Since October 2023 - Comments: 274
11:32 AM, 13th November 2026, About 16 minutes ago
So apparently, you cant be a saver and a “worker” according to labour, as savers are getting the tax hike too.
Next on the chopping block are employers, as that idiot treasury secretary said they are not “workers” either.