Renters will bear the brunt of the chancellor’s planned tax hikes as almost half of landlords plan to increase rents next year as a result, the National Residential Landlords Association (NRLA) has warned.
The warning pre-empts the two percentage points rise on income tax rates on property income which was announced in the last autumn Budget and are due to be implemented in April 2027.
The association detailed that, according to a poll of its members, 48 per cent of landlords plan to increase rents over the next 12 months as a result of the rise.
Similarly, 35 per cent of landlords plan to increase rents by more than previously planned because of the changes, while 33 per cent said they plan to sell one or more properties as a result.
NRLA chief executive, Ben Beadle, said: “If the government is serious about easing cost of living pressures, it needs to look in the mirror.
“To be increasing the cost of providing rental housing, whilst keeping housing benefit support frozen, simply makes no sense.
“Renters will be left picking up the bill for the chancellor’s tax hikes. The government needs to scrap plans that risk pushing rents higher and making it harder for people to find a home.
“And for those proposing rent controls as the answer, they do nothing to address the root cause of higher rents — rising costs and a chronic shortage of homes to meet demand.”
The NRLA also pointed out that the Office for Budget Responsibility has previously warned that the policy would lead to higher rents.
tom.dunstan@ft.com
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