Rents to rise directly as a result of Healey’s Budget
Summary
The article reports industry criticism of the Budget’s further 2% increase in property income tax rates, with landlords and advisers warning it could reduce private rental supply and push rents higher. The Office for Budget Responsibility is cited as saying the combined tax changes may materially reduce landlord returns and encourage some landlords to exit the market.
Why it matters
For residential property surveyors, the measure may affect rental market dynamics, investor appetite and valuation assumptions for buy-to-let assets. It is also relevant to advice on landlord sentiment, supply trends and the wider lettings market.
Key points
- NRLA says the tax rise will increase pressure on landlords and renters
- OBR warns the measures could reduce long-run rental supply
- Industry commentators expect some landlords to sell or leave the sector
- Reduced supply may support higher rents over time
- The change is due to come into force from April 2027
Organisations:
National Residential Landlords Association, Office for Budget Responsibility, UK Sotheby’s International Realty, Landlord Action, Blick Rothenberg
Regulations:
Renters’ Rights Act
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