Scrap stamp duty and council tax to fix housing crisis claims think tank
3 weeks ago | 3 comments
Landlords face renewed National Insurance tax proposal
8:30 AM, 3rd June 2026, 3 weeks ago
27
Categories:
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
Comments
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
Member Since January 2024 - Comments: 388
10:59 AM, 4th June 2026, About 3 weeks ago
Reply to the comment left by Markella Mikkelsen at 04/06/2026 – 08:29
And let’s see what happens when the employer (tenant?) doesn’t pay our salary (rent?) for months.
Member Since January 2025 - Comments: 19
10:04 AM, 6th June 2026, About 3 weeks ago
Is George Bangham aware that landlords pay tax on income, now at a 2% surcharge, and already pay NI, reduced because they are self-employed and are not eligible to receive the full range of benefits?
If I have to pay higher NI, I’d like access to the full range of benefits. If not, that would ‘clearly be unfair’.
Member Since June 2015 - Comments: 195
4:03 PM, 6th June 2026, About 3 weeks ago
“This is clearly unfair: income from renting out a property should be treated the same as income from work.”
Happy for this as it would then mean that rental income is the same as employment income and therefore the same as self employment. But wait – that would mean that mortgage interest is for a business so would be wholly allowable.
Beware the unintended consequences of what you propose!
Also will create a bigger 2 tier system as I doubt they would be able to make limited companies pay the NI. How would that work?
No matter, if they don’t like the end result they can always legislate to skew the market even ore!
Member Since April 2018 - Comments: 472
4:29 PM, 6th June 2026, About 3 weeks ago
This government wants to fit landlords into any category that suits their objective (theft) at the time.They have already said landlords are not working people , non incorporated landlords can not be businesses because they don’t get full tax relief on loans and they are now being taxed at an additional 2% because they are apparently considered to be investors.Therefore they have no argument to charge NI.
Member Since January 2023 - Comments: 329
4:38 PM, 6th June 2026, About 3 weeks ago
They (Burnham!) may just load it up onto property income tax as they have carved out Property for many differing taxes like CGT so they will find a way whether we like it or not
Member Since January 2024 - Comments: 388
10:16 AM, 7th June 2026, About 3 weeks ago
Reply to the comment left by GH at 06/06/2026 – 10:04
Landlords do not currently pay NI and are not self employed. Pretty much all landlords are regarded as investors, not running a business or trade.
Member Since January 2025 - Comments: 19
11:12 AM, 7th June 2026, About 3 weeks ago
Reply to the comment left by Ryan Stevens at 07/06/2026 – 10:16
I am a landlord. I am self-employed (sole trader) and I pay NI. It’s less than an employee of similar earnings would pay, but, as I said in my original comment, that’s because s/e NI contributions do not entitle me to a full range of benefits, should I need them.
Whether the Govt, or you, consider me a business, I certainly am a sole trader, pay my taxes, pay my NI contribution, and contribute to the economy.
Member Since August 2023 - Comments: 9
6:42 PM, 7th June 2026, About 2 weeks ago
I have worked & paid NI for 54 years, now retired, Boom or bust Labour Party want mass homelessness.
Member Since January 2024 - Comments: 388
9:51 PM, 7th June 2026, About 2 weeks ago
Reply to the comment left by GH at 07/06/2026 – 11:12
If you’re a landlord you almost certainly aren’t self-employed. Maybe you’re self-employed and also a landlord?
Alternatively, maybe you are completing your own tax return and filling in the wrong boxes?
It may also be the case that you are choosing to pay voluntary NI, but that is a separate issue and nothing to do with being a landlord.
Member Since January 2025 - Comments: 19
7:59 AM, 8th June 2026, About 2 weeks ago
Reply to the comment left by Ryan Stevens at 07/06/2026 – 21:51
With respect, you don’t know what you’re talking about.