The NRLA has urged landlords to write to their MP to protest the “savage tax hikes” set to impact the sector next April.

Chief executive Ben Beadle admits that there’s practically no prospect of a successful legal challenge to Chancellor John Healey’s announcement and wants landlords’ support to bolster the group’s case in Treasury discussions by explaining to their MP what impact the tax hike will have on them, their business and tenants.

“These are dark times and it is vital we work together to challenge this unjust targeting of our sector – at a time when people need it most,” says Beadle.

He says letters could explain whether or not landlords will have to pass on costs in rent rises to tenants, setting out their particular circumstances and the decisions they face, including if they plan to leave the sector.

“You may also want to ask your MP to raise your concerns directly with the Chancellor of the Exchequer and Housing Minister Matthew Pennycook MP, to ask questions in the House of Commons about the issues you have raised and to seek a debate in parliament on the private rented sector.”

Announced

The Chancellor announced that the tax rates on property income will rise from April 2027, with basic-rate taxpayers paying 24%, higher-rate taxpayers 44% and additional-rate taxpayers 49%. His two-percentage point hike came on top of the 2% announced by his predecessor Rachel Reeves, which was announced last year and deferred to 2027.

The NRLA says the tax hike could see a basic rate taxpayer letting a flat in London needing to add £123 to the existing rent to cover the new tax rate, while the equivalent rent rise in Manchester would be £73 and in Cardiff £62.

Beadle adds that the group is frustrated by the government’s stated intention that it doesn’t want to raise taxes for ‘working households’ and that the Chancellor identified landlords as a group that could be taxed more or – arguably – who are considered more acceptable to tax more.

Plethora

“Being a landlord is hard work – something the government should know better than anyone, given the plethora of new responsibilities and obligations they have placed on our shoulders,” adds Beadle.

The Scottish Association of Landlords has also urged the Scottish government not to pass on the Chancellor’s 4% surcharge on rental income from the recent UK Budget, warning that costs will inevitably be passed on to tenants. It believes renters in Scotland could face an average monthly rent hike of £40 if ministers fail to rule out a ‘tenant tax’.

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