Renters could face higher housing costs from 2027 after new research suggested landlords are preparing to pass on planned tax increases.
From April 2027, income tax rates on property income are set to rise by two percentage points, following measures announced in last autumn’s Budget.
A survey of National Residential Landlords Association (NRLA) members, conducted by Pegasus Insight, found that 46% of landlords plan to increase rents over the next 12 months in response to the changes.
Around 35% said they expect to raise rents by more than they had previously planned, while 33% indicated they may sell one or more properties as a result of the tax rise.
The findings add to previous warnings from the Office for Budget Responsibility (OBR), which has said the policy is likely to contribute to higher rental prices.
The housing minister, Matthew Pennycook, has said that tax increases introduced by the previous government have been a key factor behind landlords selling properties, with further tax pressure having been added under the current administration.
The comments come against a backdrop of ongoing concern within the sector about the impact of taxation on rental supply and landlord decision-making.
At the same time, housing benefit levels remain frozen in cash terms, leaving some tenants reliant on support facing increased pressure as private rents continue to rise in many parts of the country.
The Institute for Fiscal Studies has also warned that the current fiscal environment is “no excuse for a system that creates uncertainty for renters and unfairness between local areas,” highlighting wider concerns about inconsistency in housing support and affordability pressures across the rental market.
