Landlords could face annual property tax under Burnham
2 weeks ago | 22 comments
NRLA calls for landlord tax reform to boost the PRS
8:57 AM, 1st September 2026, 1 week ago
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Landlord tax reform should be used to encourage investment and increase the supply of homes to rent, according to new proposals for the private rented sector from the National Residential Landlords’ Association (NRLA).
The 17-page plan calls for changes to Capital Gains Tax rules, energy efficiency incentives and the restoration of Local Housing Allowance rates.
It also proposes stronger enforcement against criminal landlords and new powers to tackle anti-social behaviour, particularly in HMOs.
The recommendations have been sent to ministers, think tanks, stakeholders and the Prime Minister, Andy Burnham.
Landlord tax changes
The NRLA’s chief executive, Ben Beadle, said: “The English Housing Survey shows more than 80% of private renters are satisfied with their homes, and two thirds say they find it easy to afford their rents.
“That said, we know there is room for improvement.”
He added: “The country is still in desperate need of homes to rent, and if the government decides to bring CGT rates in line with interest rates it is essential they offer alternative support to landlords to remain in the sector and continue to invest.
“We all agree the country needs a healthy, vibrant private rented sector, and with 1.34 million households on the waiting list for social homes it is more vital than ever.”
CGT investment relief
One proposal is a deferred annual investment allowance which would build up each year but only be realised when a landlord sells a property, with those investing for longer receiving a higher payment.
Business Asset Rollover Relief would also be extended to residential property, allowing landlords to defer CGT when sale proceeds are reinvested in new homes to rent.
The tax would remain payable when the replacement property was eventually sold. The plan comes amid discussion about bringing CGT rates into line with Income Tax.
Energy efficiency support
The proposals also call for specified energy efficiency improvements to be treated as revenue costs so landlords could deduct them against income tax.
Ministers are being urged to publish an annually updated list of qualifying measures and create a modernised Landlord Energy Saving Allowance covering work such as double glazing and low-carbon heating.
Local Housing Allowance rates would meanwhile be restored to at least the 30th percentile from the next financial year and maintained there for the rest of the Parliament.
The plan also calls for an assessment of the social and economic impact of restoring LHA to the median rent, alongside stronger action on anti-social behaviour in HMOs.
Tags:
Capital Gains Tax Landlords, HMO landlords, landlord energy efficiency, landlord tax reform, Local Housing Allowance, Private Rented Sector
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Member Since February 2016 - Comments: 986 - Articles: 1
10:29 AM, 1st September 2026, About 1 week ago
The disastrous 2% extra tax for landlords only will also ha e to be removed.
I am surprised that nobosy considers that illegal…
Member Since June 2018 - Comments: 32
11:03 AM, 1st September 2026, About 1 week ago
Odd that the NRLA didn’t mention Section 24, former chancellor George Osborne’s discriminatory plan to remove tax relief on landlord finance costs; further confirmation that cancelling my NRLA subscription was justified. At £125 pa the organisation offers little insight compared to property118, which I’ve decided to support with £10 a month instead.
Member Since May 2014 - Comments: 643
11:57 AM, 1st September 2026, About 1 week ago
Reply to the comment left by Richard Dean at 11:03
I have read on another forum that it had been discussed in parliament to get rid of section 24 and replace it with rent controls.
Having experienced rent controls pre 1988 housing act this would definitely be a NO from me.
Member Since October 2020 - Comments: 1343
12:10 PM, 1st September 2026, About 1 week ago
Their proposals on offsetting a higher rate of CGT would only cover rental properties, so they seem to be happy to throw second home owners under the bus.
Member Since April 2021 - Comments: 101
1:13 PM, 1st September 2026, About 1 week ago
We left the NRLA after seeing their weak lobbying during the build up to the RRA. After several years of mediocre service, that was the straw…
Member Since January 2024 - Comments: 414
5:23 PM, 1st September 2026, About 1 week ago
“….if the government decides to bring CGT rates in line with interest rates”.
I would be SOOOO happy. Interest rates are about 4-5%! Current CGT rates are somewhat higher:-D
Member Since June 2024 - Comments: 9
5:39 PM, 1st September 2026, About 1 week ago
Why didn’t the NRLA talk about abolishing S24? I think alongside additional regulation, this has been one of the largest problems for private landlords, whose profits have been decimated and they cannot afford to ‘switch’ to Ltd company status. The Government needs to make this a level playing field, recognise that private landlords are also running businesses and providing a good service, and tax everyone equally. Surely everyone can see the unfairness in this. It beggars belief that the NRLA cannot drive this point home. Glad I never subscribed to the NRLA, they seem to be very weak in representing the views of landlords and pushing the ‘think tanks’ into the reality that we are all facing as landlords.
Member Since January 2017 - Comments: 132
10:20 PM, 1st September 2026, About 1 week ago
Would have been nice if the NRLA has asked it’s members what they would like to see, instead of them thinking they themselves have a clue what the private landlord needs in order to continue to operate successfully in the PRS.
Member Since June 2013 - Comments: 693 - Articles: 1
3:51 AM, 2nd September 2026, About 1 week ago
Reply to the comment left by Ryan Stevens at 01/09/2026 – 17:23
youve misquoted.
Member Since June 2013 - Comments: 693 - Articles: 1
3:56 AM, 2nd September 2026, About 1 week ago
The plan also calls for an assessment of the social and economic impact of restoring LHA to the median rent, alongside stronger action on anti-social behaviour in HMOs.
SURELY ITS NOT JUST HMO’s THAT HAVE ASB!? SCAPEGOATING.
AND WHY ARE NRLA SO KEEN ON STRONGER ENFORCEMENT OF OUR SECTOR? ITS BIZARRE. IM A MEMBER BUT THEY NEVER ASK MY VIEWS,