The chancellor Rachel Reeves has just announced that she will increase basic and higher rate of tax on property, and savings income by 2 percentage points points from April 2027.
“I will ensure that the wealthiest will contribute the most,” she said.
She adds that 90% of tax payers will not pay tax at all on their savings.
It is estimated that the increase in the tax rates on dividends, property and savings income by 2% will raise £2.1bn.
Adam Jennings, head of lettings at Chestertons, said: “Increasing income tax for landlords could have dire consequences on the rental market. More landlords could decide to sell up which will result in fewer available rental properties and leave more renters struggling to find a property within their budget.”
Ben Beadle, Chief Executive of the National Residential Landlords Association, commented: “Despite claims of tackling cost of living pressures, the Government is pursuing a policy that the Office Budget Responsibility has made clear will drive up rents.
“Almost one million new homes to rent are needed by 2031. But this Budget will clobber tenants with higher costs while doing nothing to improve access to the homes people need.”
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