The Chancellor has defended Budget changes that increase Income Tax on rental earnings, arguing the policy protects earned income from employment while asking more from asset holders. From April, landlords will face a 2 percentage point rise in tax on property income, with higher and additional rates also increasing.
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.
MPs have heard criticism of the draft Private Rented Sector Database Regulations 2026, with industry figures arguing that the proposed upload process would be highly time-consuming for portfolio landlords and managing agents. The service, to be called Register your Rental Property, would require annual per-property registration fees and compliance by 14 November 2027.
HMRC data cited in the article shows buy-to-let investors recorded £1.15 billion in losses on property sales over the past year, up 32% from £870 million previously. The piece attributes the increase to stagnant or falling house prices in some markets, low net yields, and added uncertainty from the Renters’ Rights Act.
The article reports that many landlords are tightening tenant referencing and affordability checks following the Renters’ Rights Act, with a significant share also asking for guarantors. It also notes low awareness among landlords of the forthcoming registration requirement under the Act, alongside signs of portfolio adjustment and increased tenant-related disputes.
Two major estate agency groups say the Renters’ Rights Act ban on rent in advance requests is creating unintended difficulties for some tenants, particularly overseas renters, international students and people with weaker credit profiles. They argue that, alongside the loss of Section 21, landlords are becoming more risk-averse and that guarantors may need to play a larger role as an alternative.
The article reports that more than half of letting agents have become more cautious about recommending tenants since the Renters’ Rights Act came into force. Goodlord says this reflects landlord concerns around the end of Section 21, limits on rent in advance and restrictions on bidding above asking rent, with some landlords now more likely to reject applicants or leave properties vacant while waiting for lower-risk tenants.
The article reports that the Chancellor will not raise Capital Gains Tax in the upcoming Budget, avoiding a potential increase in landlords’ CGT liabilities. It also notes that landlords still face wider tax and regulatory changes, including higher property income tax rates from April 2027, expanded Making Tax Digital requirements, and reforms under the Renters’ Rights Act.
A survey reported by August suggests that most landlords are unaware of the forthcoming landlord register and ombudsman linked to the Renters’ Rights Act. Awareness of other tenancy reforms is higher, but the article highlights a significant communication gap ahead of the planned rollout from December.
The NRLA is urging Chancellor John Healey to reform Capital Gains Tax in the upcoming Budget so that landlords are not taxed on property value increases driven by inflation. It argues that the current system discourages long-term investment in rental housing and should distinguish between real gains and inflationary price growth.
