Extra tax for landlords

Corporate landlords will be much better imo. They will have financial resources and management structures in place to properly manage properties.

I rented during my 20s and the vast majority of private landlords rent out absolute shit holes and don’t properly maintain them at all. We really need to stop pretending that they are offering kind of social service by renting out properties. The sooner they exit the market the better.

Not always.
I always valued good tenants over higher rent.
Until a ‘friend’ of an existing tenant moved in and was trouble.
Between a bad tenant and taxation, I ended up selling at a substantial loss. My pension and savings went up in smoke.
Sold to an investor who didn’t even live in the country. If the buyer treated the tenants the way he treated the sale, he has crammed four people into a two bed and tripled the rest.

@HellsBallsYes I do on my other properties as they have come up for renewal. It’s not about being selflessly benevolent it’s about good tenants who stay and look after your property worth much more than increasing the rent to market value every year.

You will end up with a big huge asset at the end of all of this, though, so I think it is fair.

Are there any landlords on mumsnet who actually charge the going rate?
Or is every one of them selflessly benevolent?

It would be fair if mortgage interest could be deducted first.

Legislation!

I'm also a landlord renting out at below market rent ( on average 25% per month below). I will now put up the rent as I have no choice with new legation coming and in and higher taxes.

Landlords are such an easy target, aren't they. Let's introduce a new law which means landlords can't give notice to their tenants and increase tax even more. What a fantastic idea! They haven't learnt from what happened last time which resulted in an unprecedented number of landlords selling up. Now will be even worse. More that will sell and the rest will up the rent...and the winners are....oh yes, large families in council housing!

OP, I am in exactly the same position. I’m about to check average rentals for properties similar to mine and then increase the rent.

I have no doubt there are many crap landlords but we aren’t all crap.

Labour have pushed this cost on to the tenant. It’s obvious this will happen but they’re too thick to see it.

No they will be bought by investors who will increase the rent substantially.

Yes there will
Its my job to help people find rentals and its HARD, my clients have good salaries and no adverse credit so are good prospects for a Landlord and its STILL hard.
They are mostly moving here from overseas and from what they tell me the UK seems to be the hardest place to secure a Rental.
Even getting viewings is a challenge - in some places if I arrange viewings on a Friday for the following week up to 50% will cancel on Monday so even if you do find somewhere you have to move quickly.
Renters Rights are great but no good if you can't find somewhere to rent.
I have certainly seen a move to larger more corporate landlords and they prefer not to rent to families if there are other options

You are NOT being taxed twice. This is a fundamental misrepresentation of the tax system. You are being taxed on your gains

I rent out below market value and this cost will be phased in on to the tenants when I renew next year so I have fully covered the extra by April 2027 when it comes in.

or I’ll sell not sure yet.

No but they will be occupied at a lower density rate so overall less homes will be available.

And unless measures are taken to force lenders to grant mortgages to people many people who used rent won't be able to buy and could risk being homeless.

You can sell your properties presumably at more than what you paid for them. . All is not lost

It’s being professionalised. Being a landlord can no longer be a side hustle.

It’s the same with cash.
The cash you save outside an ISA, which earns interest at a rate above your savings allowance, is now subject to an additional 2% tax.

Rinse & repeat for dividends tax.

I doubt there will be fewer but the cost of rent will increase significantly as they will be wanting a higher return on their investment as these will be very large companies controlled by very wealthy shareholders wanting their big slice of the profit pie.

My tenants have decided to move out, so I'm selling up. The only reason we kept out btl was because I couldn't face eviction. I needed to keep my foot on the property ladder while we rented for work ourselves. The choices are to get into a business mindset or leave. If we did re let it, the rent needs to go from £1100 to £1500. If we didn't move to market rate asap we would be in big trouble come the renters reform changes. That's the brutal reality. If your not brutal ( we arent) it's really really time to get out.

So there won't be fewer rental properties.

agree, it will be a huge problem and will have an horrendous impact on renters.

We have a couple of rental properties, we charge 15% below market rent. Money I will be losing following the budget today, will be passed on to our tenants. Harsh but that’s reality and is what the majority of landlords will be doing.

Institutional and/or overseas investors will hoover them up. Arm's length management and increased rents will follow.