Reeves plots £2bn grab – renters will pay the price
Landlords are bracing for a brutal new tax hit as the Treasury eyes slapping National Insurance on rental income.
Chancellor Rachel Reeves is drawing up the move ahead of her autumn Budget in a bid to rake in £2 billion and plug a £40bn black hole in the public purse. Labour insiders say the crackdown is aimed at so-called “unearned income” – but critics warn it will drive up rents and force landlords to sell.
Currently, landlords already pay income tax on rental profits, but could soon face the same NI rates as workers — 8% for employees, 6% for the self-employed, and 2% above £50,000.
Shaun Moore, tax expert at Quilter, slammed the plan as a “significant blow” to buy-to-let owners already squeezed by soaring costs and tighter rules.
And Sarah Coles of Hargreaves Lansdown warned tenants will suffer:
“Almost a third of landlords are planning to sell up. With fewer rental homes available, this risks piling more pressure on renters already facing relentless hikes.”
Ben Beadle, head of the National Residential Landlords Association, branded it “punitive,” adding:
“We need a million new rental homes by 2031. More taxes will only push rents up and drive landlords out.”
The NI raid is just the latest Treasury property tax bombshell. Reeves is also mulling a levy on homes worth over £1.5m and fresh charges on property sales over £500,000.
With the Budget just weeks away, landlords fear the worst — and Britain’s renters could be left to pick up the tab.