IMLA Report: Tax Changes Prompt Landlord Rethink

Editor's note: This brief was summarised by The Property AI Team from a report by Landlord Today. Read the original article for full details.

IMLA Report: Tax Changes Prompt Landlord Rethink

Landlords are likely to reassess the balance between income, potential capital growth and the costs of changing their investments in response to higher taxes on rental income, according to a new report from the Intermediary Mortgage Lenders Association (IMLA). The report examines how the October 2026 Budget's further two-percentage-point increase in tax on rental income will affect individual landlords holding properties in their own names.

The findings, published by Landlord Today, come from an IMLA report titled The October 2026 Budget: Impact on the housing and mortgage markets. According to the report, the further two-percentage-point increase in tax on rental income is expected to prompt individual landlords to reconsider how their property investments are structured.

Specifically, the report indicates that landlords are likely to reassess the balance between income, potential capital growth and the costs of changing their investments. Decisions around holding, adjusting or restructuring property portfolios may come under renewed scrutiny as the tax changes take effect.

The report focuses on individual landlords holding properties in their own names, a segment of the market directly affected by the Budget's tax increase on rental income. For letting agents and inventory clerks, the findings point to a potential period of change in how landlord clients approach their investments, which could affect portfolio management, tenancy arrangements and the day-to-day operational support agents provide.

IMLA's report is titled The October 2026 Budget: Impact on the housing and mortgage markets, and its findings were reported by Landlord Today. The report does not, in the source material available, provide specific figures on the number of landlords expected to change their approach or the scale of any portfolio adjustments.