Budget impact on landlords

From April 2027, landlords will face a 2% tax increase on their rental income - the basic rate of property income tax will rise from 20% to 22%, while the higher rate will increase from 40% to 42%. Those paying the additional rate will pay 47%.

‍

In a survey of landlords, 86% said they expected the measures to push rents higher. But the first phase of the Renters’ Rights Act takes effect in May 2026 – from then, landlords will only be able to raise rents once a year.

‍

Ryan Etchells at Together commented, “this will inevitably result in higher rents from next year onwards, and if landlords can’t make their portfolios work for them they could be forced to sell-up altogether.”

‍