Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
Landlords Face Second Successive Budget Tax Raid
Landlords face a second successive Budget tax raid after Chancellor John Healey announced another increase in tax on property income, according to Property118. Tax rates on property and savings income will rise by a further two percentage points from April 2027.
The change adds to the rise previously announced by Rachel Reeves, leaving landlords with back-to-back increases in the tax applied to property income.
Dividends and Employment Income Escape Latest Rise
According to the report, dividends and employment income have escaped the latest rise. The additional two percentage point increase applies to property and savings income, not to those other income streams.
That matters for landlords who hold property through structures or who draw income in different forms, because the tax treatment of property income diverges further from that of dividends and employment income.
What This Means for Letting Agents and Inventory Clerks
For letting agents and inventory clerks, the announcement signals further pressure on landlord clients' net returns from April 2027. Agents working with portfolio landlords may find clients reviewing their holdings and income arrangements ahead of the change, and the cumulative effect of two successive increases in property income tax rates is likely to remain a live topic in landlord conversations.
The report does not set out further detail on thresholds, reliefs or transitional arrangements, and it states no additional measures affecting the lettings sector.
Key Points
- Property118 reports landlords face a second successive Budget tax raid.
- Chancellor John Healey announced another increase in tax on property income.
- Tax rates on property and savings income rise by a further two percentage points from April 2027.
- The rise adds to an earlier increase announced by Rachel Reeves.
- Dividends and employment income have escaped the latest rise.
Source: Property118