Property owners face new Income Tax hikes
Summary
The article reports that the Chancellor has announced a further 2 percentage point increase in Income Tax on property rental earnings from April 2027, taking the basic rate to 24%, the higher rate to 44% and the additional rate to 49%. Industry commentators warn the change could reduce landlord confidence, push up rents and further constrain rental supply.
Why it matters
This is relevant to residential property surveyors because tax changes can affect landlord behaviour, portfolio decisions and the availability of rental stock. It may also influence valuation assumptions and market sentiment in the private rented sector.
Key points
- Rental income tax rates will rise by a further 2 percentage points from April 2027.
- The basic, higher and additional rates on property income are all increasing.
- Landlord groups expect the change to reduce supply and put upward pressure on rents.
- Some landlords may reconsider ownership structures, including limited company holding.
- The measure adds to wider pressures on landlords, including regulation and rising costs.
Organisations:
Treasury, Office for Budget Responsibility, NRLA, Propertymark, Fleet Mortgages, Landlord Action
Regulations:
Renters’ Rights Act
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