Last Tuesday, I found myself doing four back-to-back media interviews, as the fallout began from Rachel Reeves’ latest announcement: an 8% National Insurance charge on landlords’ so-called “unearned income.” Once again, landlords are being singled out to plug the government’s growing black hole in public finances.
Let’s be clear: landlords are working people. We may not clock into an office or wear a uniform, but we’re providing a 24/7 service - housing. Despite that, we’re being treated like easy targets.
The Chancellor is now looking to extract over £2 billion more from the sector, on top of the £27 billion it already takes annually. It’s yet another hit, and it won’t solve the housing crisis. It will make it worse.
The pressure on landlords has been building for years. Things really started to shift in 2017, when George Osborne introduced Section 24, abolishing mortgage interest relief on buy-to-let properties held in personal names. That move meant landlords began paying tax on turnover, not profit - something almost no other business is subjected to. Depending on your tax band, that meant rates as high as 45%.
Add to that the additional stamp duty surcharge (which has risen to 5% on second homes), the scrapping of the wear and tear allowance in 2016, and ongoing capital gains tax liabilities when selling; it’s no surprise that landlords are leaving the sector in large numbers.
Recent data shows an estimated 570,000 rental properties will be sold between 2024-2025, compared with just 188,000 in 2010. That’s a staggering jump, and one we’re seeing first hand at Landlord Action. Over the last two years, we’ve seen a marked increase in Section 21 notices, and when we ask landlords why they’re evicting, the most common answer is: we’re selling up.
The end of cheap borrowing is another major factor. Since the fallout of the kamikaze budget in late 2022, mortgage rates have surged. As landlords roll off fixed deals onto expensive variable rates, many are caught in a trap; costs are up, but tenants simply can’t afford large rent increases. It’s a perfect storm.
This coincides with ongoing uncertainty around the Renters’ Rights Bill (RRB). Having worked in this sector for over 30 years and having rented my first property in 1993, I’ve never seen confidence this low.
The scrapping of Section 21 is a major concern for landlords who fear they won’t be able to regain possession when needed. Periodic tenancies are being introduced, yet there’s been no clear plan or investment in the courts to manage the inevitable rise in Section 8 cases. In some areas, like London, landlords are already waiting over a year for bailiff appointments. That’s not sustainable! Landlords aren’t lenders of last resort.
And there’s more on the horizon. The government’s EPC targets - requiring all rentals to meet a Band C by 2030, will mean substantial renovation costs. Yet landlords are expected to fund these upgrades with little support. It’s another burden placed on small-scale landlords already at breaking point.
Despite all this, rental demand is 60% above pre-pandemic levels. There’s still a shortage of quality homes to rent. Tenancies now average over three years, showing that tenants want security, and most landlords want to provide that. But without policy changes to support the sector, supply will continue to shrink, and rents will keep rising.
Let’s not forget the bigger picture. Over 1.3 million people are on the social housing waiting list, and Labour’s pledge to build 1.5 million homes in five years seems unlikely given the skills shortage. We’re short around 30,000 bricklayers alone. The private rented sector has become the sticking plaster for a failing social housing system, and yet it’s landlords who are penalised at every turn.
This month alone, I’m speaking at seven landlord seminars across the country. I get asked the same thing everywhere: “Does the government care about small landlords?” Honestly, the signs aren’t great. But I remind landlords that the game has changed. The old days of the hobby landlord are over. Now, more than ever, it’s about professionalism.
94% of landlords own just one property. These are ordinary people and not big corporations. If you’re one of them, now’s the time to reassess your position. Do you want to keep self-managing, or would you benefit from working with an accredited letting agent? Choosing the right agent is crucial! And yes, I train them too.
Above all, remember this: land-lording is a business. You need a plan. You need to put a value on your time. You need robust tenant checks and full compliance. With the Renters’ Rights Bill coming, landlords will be more accountable than ever.
We’re not just landlords, we’re housing providers. And if the government won’t fight for us, we need to fight smarter.
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