Just as the industry has been preparing itself for regulatory reform under the forthcoming Renters’ Rights Act, the recent Budget has added yet another layer of change for landlords. This time in the form of increased taxation on rental income.

For many landlords, this latest announcement feels like one more hit in what has become a relentless cycle of reform. The sector is already grappling with the abolition of fixed-term tenancies, the end of Section 21 notices and new compliance duties; and now the updated tax regime, with higher income tax rates on rental earnings.

As of 6 April 2027, rental income will be taxed under separate “property income” bands which will come with higher rates than before. The basic rate rises to 22%, while higher- and additional-rate landlords will pay 42% and 47% respectively.

The message seems hard to miss – the private rented sector is amid a fundamental reshaping. And while each individual reform may be presented as a step toward modernisation or fairness, the combined effect is both an operational and financial burden to many landlords.  

With more change on the horizon than ever before, every part of the rental journey demands closer attention and guidance. Never a better time to have a knowledgeable, proactive agent on board to keep you compliant.