Private landlords and property professionals are calling for a fundamental review of property taxation, warning that further financial pressure could drive more investors out of the private rented sector.
Ahead of today’s Autumn Budget, Propertymark has urged the government to examine the cumulative impact of taxes affecting landlords, rather than introducing further changes in isolation. The professional body wants a review covering mortgage interest relief, income tax, capital gains tax and additional-property stamp duty charges. It argues that repeated changes have made long-term investment decisions increasingly difficult.
Meanwhile, the National Residential Landlords Association (NRLA) wants tax reforms designed to encourage investment in additional rental homes.
Tenants face growing competition
Ben Beadle, chief executive of the NRLA, said an average of ten prospective tenants are competing for each available rental property. He warned that the government must address supply if it wants to improve affordability.
“The Budget needs to do more to boost the supply of homes to rent to give tenants greater choice about where they live,” he said. “With an average of ten people chasing every available rental property, the tax system needs a fundamental overhaul to encourage long-term investment in vital new rental housing stock.”
The NRLA also wants Local Housing Allowance rates unfrozen. According to Beadle, restoring support to reflect local rental costs would benefit more than 900,000 households.
Propertymark has similarly called for housing benefit rates to cover at least the cheapest 30% of local market rents, with annual uprating.
Smaller landlords reconsider investment
Sam Humphreys, head of mergers and acquisitions at Dwelly, warned that further taxation could accelerate the consolidation of rental portfolios.
“Further taxation could accelerate the consolidation of rental portfolios, with smaller and less efficient landlords increasingly likely to reassess their position or exit the market altogether,” he said.
He added that larger professional operators could benefit from opportunities to acquire portfolios. However, he cautioned against measures that discourage investment in rental housing overall.
Roma Sharma, managing director of Rushbrook, also highlighted the rising cost of maintaining rental properties. She said: “The Government must be careful not to view landlords simply as an additional source of tax revenue.”
Sharma pointed to repairs, maintenance, safety requirements and professional management as continuing costs.
Energy efficiency adds another challenge
Both Propertymark and the NRLA want financial assistance for landlords facing energy efficiency improvements. Propertymark is calling for tax incentives, including a renewed Landlord’s Energy Saving Allowance and potential VAT relief.
Meanwhile, the NRLA wants a dedicated package of support ahead of the government’s October 2030 energy efficiency deadline.
The organisations argue that without sufficient financial support, additional costs could discourage investment and further restrict the supply of rental accommodation.
For letting agents, the central concern is whether tax and regulatory changes will continue to alter the balance between smaller landlords and larger portfolio operators. The industry’s message is that improving tenant affordability will require more rental homes, not simply further changes to landlord taxation.
