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Renters Face Tax Hike Pain
29 Nov, 2025
Summary
- Landlords face a tax increase from 20 to 42 percent.
- Tenants may face higher rents due to landlord tax changes.
- Increased landlord taxes could push more properties off the market.
New tax increases imposed on landlords are predicted to result in higher rents for tenants. The Chancellor's recent Budget raised income tax rates on rental income, a move that industry insiders claim will directly impact renters through increased costs. This change is set to take effect in April 2027, adding financial pressure on tenants already facing elevated rental prices.
Experts suggest these additional costs may lead some landlords to exit the property market altogether. This could decrease the supply of available rental homes, making it more challenging and expensive for tenants to find suitable accommodation within their budgets. The situation could also benefit first-time buyers by potentially freeing up properties.
This development follows a series of tax adjustments affecting landlords, including stamp duty surcharges and limitations on mortgage interest deductions. These cumulative measures have made it more difficult for landlords to maintain profitability, potentially accelerating their decision to sell properties and impacting the rental market dynamics.
