Chancellor Rachel Reeves has delivered another blow to landlords in her latest Budget by raising taxes on property income by a whopping 2% From April 2027, both the basic and higher rates applied to property, savings and dividend earnings will climb.
At that point, the basic rate for property income will move to 22%, the higher rate to 42% and the additional rate to 47%.
In addition, a new annual surcharge of £2,500 – £7,500 in addition to council tax per year, for homes valued from £2m – £5m could result in some landlords being hit twice by additional charges from April 2028.
Although widely called a “mansion tax”, even relatively modest properties could incur the charge in exclusive areas of high cost cities, such as London.
The Office for Budget Responsibility (OBR) warns that landlords will still be worse off under this Budget. Some landlords, – especially those affected by both the council tax surcharge and an increase in property income tax will have no choice but to downsize or exit the market entirely.
Following the news, The Negotiator reported that landlords, including the NRLA, are deeply unhappy that they face more taxes following recent increases both to Stamp Duty and the end of tax relief on mortgage interest payments for buy-to-let mortgages. For many landlords, this is the final nail in the coffin.
One landlord from West London shared: “there’s no point being a landlord now. It isn’t worth it. It’s why I’m getting ready to sell. All that money is better placed elsewhere, rather than sitting in a house which is becoming no more profitable than a current account in a bank. It’s a joke.”
She’s not alone. In the last two weeks a record number of landlords have approached us wanting to sell. And with time running out between now and April, they’ve come to us because they want to sell fast without having to compromise on price.
There’s good reason. At Landlord Sales Agency, our average sale time is just 28 days, and up to 90% market value, with zero fees.
Put simply: contact us now, and you could easily have a sale before the New Year. It blows the traditional Estate Agent strategy out the window.
What’s more, as well as selling fast, we sell for the highest prices, encouraging a bidding war between our private database of over 30,000 buyers, the top property buying companies, private funds and first time buyers.
For so many landlords, the time is now. They’re taking action, and we’re delivering. In the last month alone, we’ve already spoken to over 100 landlords who wanted to sell, fast. They also wanted a sale where they didn’t have to take a huge hit on price. And we made it happen.
So if you have freehold buy-to-let houses you want to sell, the time to act is now. Tell us what properties you want to sell and we’ll get everything ready so that you can start 2026 ready for anything.