Scrap stamp duty and council tax to fix housing crisis claims think tank
2 days ago | 3 comments
Landlords face renewed National Insurance tax proposal
8:30 AM, 3rd June 2026, 1 day ago
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Landlords already dealing with Renters’ Rights Act compliance deadlines are now facing another tax proposal being resurrected.
The Daily Telegraph reports that the New Economics Foundation is calling for National Insurance Contributions to be extended to landlords’ rent income.
The left-leaning think tank says the current exemption is ‘unwarranted’.
It told the Telegraph that the measure could raise £3.2bn and bring landlords’ contributions closer to those paid by wage earners.
Pay NI for services
George Bangham, the head of social policy at NEF, told the newspaper: “We all expect to pay National Insurance on our wages, in order to contribute to vital services like the NHS.
“But when landlords make money from rental income, they are not asked to contribute the same as everyone else.
“This is clearly unfair: income from renting out a property should be treated the same as income from work.”
The proposal would change the sums behind many buy to let investments if adopted, particularly for landlords already working through higher borrowing costs, tax changes and the new RRA regime.
Tax landlords on profits
NEF has suggested pairing the move with a mortgage interest deduction, so landlords would be taxed on profit rather than revenue.
Property118 reported last year that a similar idea had been floated as part of a wider effort to raise around £2bn from landlords.
At the time, Treasury sources told The Times that the Chancellor, Rachel Reeves, wanted to target ‘unearned income’.
But she also wanted to avoid breaches of pre-election pledges not to increase VAT, income tax or existing National Insurance rates.
Tenants will be hit
Landlord groups have warned that further tax rises would hit tenants as well as investors.
The National Residential Landlords Association says an NI levy would be ‘disastrous’ for landlords and tenants.
It also warns that extra costs could be passed on through higher rents.
Paul Shamplina, of Landlord Action, told the Telegraph that the move could speed up landlords leaving the PRS.
More landlord tax changes
Both Mr Shamplina and the NRLA have pointed to the cumulative impact of tax changes, including a recent 2% income tax surcharge on rent income, as a pressure on margins and future investment.
The tax proposal has returned while landlords face several Renters’ Rights Act deadlines.
The final court deadline for pre-Act Section 21 and Section 8 eviction notices is 31 July 2026.
The Private Rented Sector database is due to begin its regional rollout later in the year, with registration set to become mandatory by 2027.
Compulsory membership of the new Landlord Ombudsman is expected by the end of 2028.
Landlords who miss the requirements could face fines of up to £40,000, adding another compliance risk alongside any future tax change.
Tags:
Buy to let, landlord compliance, landlord ombudsman, Landlord Tax, National Insurance landlords, PRS database, rent income tax, Renters’ Rights Act
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Member Since April 2018 - Comments: 436
10:10 AM, 3rd June 2026, About 1 day ago
What is wrong with these people? Yes most landlords also have a job and pay NI.
Member Since July 2023 - Comments: 5
10:53 AM, 3rd June 2026, About 1 day ago
I have started the process of selling my portfolio of 14 refurbed, well maintained, EPC C properties. Two are empty, all the others are being offered to the tenants first where possible otherwise they will be sold with the tenants insitu. Nobody is being evicted to sell. First ones selling are going for higher than expected. I’ll pay the CGT and move on to other more tax efficient investments with similar income but without the hassle. After 16 years I’m done.
Member Since May 2024 - Comments: 216
12:26 PM, 3rd June 2026, About 1 day ago
Currently trying to sell some to tenants, the government are not going to stop until there is no more PRS.
Member Since January 2024 - Comments: 375
2:53 PM, 3rd June 2026, About 1 day ago
Perhaps these morons can explain how investing in property (and being unable to get full income tax relief for interest on loans used for that investment) is the same as being employed?
Member Since September 2018 - Comments: 3607 - Articles: 5
3:17 PM, 3rd June 2026, About 1 day ago
and for those LL’s already retired????
Member Since January 2024 - Comments: 375
3:21 PM, 3rd June 2026, About 1 day ago
Reply to the comment left by Reluctant Landlord at 03/06/2026 – 15:17
Applying their logic that renting is somehow employment income there would be no NIC after retirement age.
But no doubt their (il)logic will change to ensue maximum NIC for evil providers of accommodation (we should stop using the word “landlord”, it has negative connotations)
Member Since April 2018 - Comments: 436
5:34 PM, 3rd June 2026, About 1 day ago
Reply to the comment left by Ryan Stevens at 03/06/2026 – 15:21
I did understand that when this was proposed earlier retirees would not pay NI, because they are retired. We will see.
Member Since February 2020 - Comments: 368
8:49 PM, 3rd June 2026, About 23 hours ago
If you are saying rental income and salary income are equal, and therefor rental income should have NI, then:
Salary income should have Stamp Duty and Capital gains taxes.
Even better, if the problem is they are not equal, then remove NI from salary.
They won’t do this, because the real justification is not equality, but grabbing more money.
Member Since April 2022 - Comments: 135
10:28 PM, 3rd June 2026, About 21 hours ago
Ok, then let’s have rental income as relevant earnings for pension contributions then.
Member Since August 2022 - Comments: 106
8:29 AM, 4th June 2026, About 11 hours ago
Reply to the comment left by Downsize Government at 03/06/2026 – 20:49
Even better –
if your employer doesn’t make a profit that month, you don’t get paid at the end of it.
Let’s see how that would sit with the civil service.