"If the Government is serious about easing cost-of-living pressures, it needs to look in the mirror"
- Ben Beadle - NRLA
Almost half of landlords are planning to raise rents in response to the government's planned tax increases on property income, according to new research, with tenants set to bear much of the financial burden of changes due in April 2027.
A poll of National Residential Landlords Association (NRLA) members, carried out by research consultancy Pegasus Insight, found that 46% of landlords intend to increase rents over the next 12 months as a direct result of the tax rise. From April 2027, income tax rates on property income will increase by two percentage points, as announced in last autumn's Budget.
The findings point to wider consequences beyond simple rent increases. Around 35% of landlords plan to raise rents by more than they had previously intended because of the changes, and 33% say they plan to sell one or more properties as a result. The Office for Budget Responsibility has previously warned that the policy would push rents higher.
The changes land against an already difficult backdrop. Housing Minister Matthew Pennycook has recently acknowledged that tax increases introduced by the previous government were the main driver of landlords selling properties, a pressure that has only grown under the current administration.
At the same time, those relying on housing benefit to access the private rented sector continue to face a freeze on the support available to them, making it harder to sustain tenancies as rents rise.
The Institute for Fiscal Studies has warned that the government's tight fiscal position is "no excuse for a system that creates uncertainty for renters and unfairness between local areas."
"If the Government is serious about easing cost-of-living pressures, it needs to look in the mirror," said Ben Beadle, chief executive of the National Residential Landlords Association.
"To be increasing the cost of providing rental housing, whilst keeping housing benefit support frozen, simply makes no sense. Renters will be left picking up the bill for the Chancellor's tax hikes. The Government needs to scrap plans that risk pushing rents higher and making it harder for people to find a home.
"And for those proposing rent controls as the answer, they do nothing to address the root cause of higher rents – rising costs and a chronic shortage of homes to meet demand."
