Rachel Reeves Tax Law Will Increase Rents
I’ve been reading some new data on rents and it’s interesting how it lines up with what a lot of landlords have been saying quietly for a while. Around two thirds of landlords who are planning rent increases say the latest tax changes are at least part of the reason. The planned rise in tax on rental income from 2027 hasn’t even landed yet, and the OBR is already warning it’s likely to push rents up. What’s striking is that the numbers are now backing that up. In a recent poll, 65% of landlords increasing rents said the tax rise was a factor. Even more pointed to the general cost of running a property going up as the main driver. Looking ahead, the biggest worry isn’t even tax. It’s the courts. With Section 21 going, most landlords say their main concern is how long it takes to get possession cases through the system. The government itself admits it’s now taking over seven months on average, the longest it’s been in years. At the same time, tenant demand is still strong. But despite that, far more landlords are selling than buying. And a fair chunk of those sales are happening with tenants already living there. I’m not trying to take sides here. But if higher taxes, higher costs and slower courts all push landlords out, it’s hard to see how that ends up helping renters. Genuinely curious how people think this plays out.