Sadiq Khan urged to cut taxes for landlords amid housing crisis

An industry body is urging London Mayor Sadiq Khan to take action to ease the tax burden on landlords.

In its response to Mr Khan’s consultation on the New London Plan, Propertymark accuses the Mayor of overlooking the role the private rented sector could play in addressing the capital’s housing crisis.

The consultation outlines proposals to build more affordable homes, including on parts of green belt land.

Reduce the burden of taxation on landlords

Propertymark criticised the consultation for failing to acknowledge the role the private rented sector plays in helping London’s housing crisis.

The industry body warns without more policy support, the private rented sector will continue to shrink and leave tenants with nowhere to go.

It says Mr Khan should discuss easing the tax burden on landlords with the Labour government.

The industry body says: “We recognise the significant challenges to an increase in supply, including the availability of workers, the cost of materials, finance for mortgages, and issues with regulation.

“Propertymark would note that these issues are also constraining the supply of privately rented properties and increasing the cost of maintenance work on existing properties.

“Reductions to mortgage interest relief and increases in interest rates have also increased landlords cost, so taken together with the additional tax burden landlords face, the private rental sector is likely to shrink or become even more expensive as landlords struggle to manage these costs.

“The Mayor should consider urgent discussions with the Labour government to see what steps can be taken to reduce the burden of taxation on landlords to encourage them to remain in the market, and to allow them to keep rents from rising further.”

Focus on building homes

The industry body warns that London’s housing delivery has slowed significantly and faces a huge shortfall.

According to Propertymark, construction starts in London have dropped to their lowest level since 2010, with 23 boroughs recording zero starts in Q1 2025.

While the government estimates London’s housing need at 87,992 homes per year, data from Savills suggests this figure should be between 90,000 and 100,000, and possibly even higher.

Propertymark urges the Greater London Authority to focus on building enough homes rather than prioritising climate change.

The industry body said: “We’ve urged the GLA to prioritise housing delivery above other competing objectives. Despite recognising the importance of climate targets, inclusion, and health, the plan must not let these aims derail efforts to build enough homes.”

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