Editor's note: This brief was summarised by The Property AI Team from a report by Property118. Read the original article for full details.
Budget Tax Rises on Rental Profits Prompt Landlord Exit Planning
The Budget announced that, from 6 April 2027, the basic, higher and additional income tax rates on taxable rental profits will rise to 24%, 44% and 49% for individual landlords in England, Wales and Northern Ireland, subject to legislation. These increases do not apply to rental profits taxed within limited companies.
According to Property118's latest landlord sentiment survey, almost two-thirds of respondents plan to sell some or all of their properties within three years. More than half expect property values to stagnate or fall behind inflation over that time, while just 7.2% expect them to grow faster.
The report, published by David Coughlin of Landlord Sales Agency, suggests that landlords who have already been waiting for the Budget before deciding whether to sell now have more to factor into their plans. It notes that starting a sale now gives landlords time to arrange their next sale before the new rental-income tax rates are due to take effect on 6 April 2027, rather than leaving everything until the new year.
The report also states that selling now allows landlords to weigh up today's prices against the prospect of more paperwork, compliance responsibilities and energy efficiency improvements.
The original article includes promotional content from Landlord Sales Agency about its services for landlords, including selling with tenants in place, selling single properties or portfolios, and managing compliance from the outset. This brief does not endorse or evaluate those services.
For letting agents and inventory clerks, the tax change and survey findings are relevant context for landlord clients considering disposal strategies ahead of the 6 April 2027 implementation date.
Source: Property118