Extra tax for landlords

[Another2356]

Here is the rub, I earnt my money through PAYE and paid tax, I then invested what I earnt into property and now my investment is being taxed again but at a higher rate of tax! This does not feel fair and whilst in the past I’ve provided property at below market rates, moving forward I will not. Adjustments will now be made and hence again tenants will be impacted. Over the last 9 years, any rent increases I have made have simply covered the extra cost of managing a rental (tax, regulation & maintenance) my net profit has not increased, although the rents have. It’s the government who are creating the rent increase problems.

Oh the winners are the banks all the way. Lloyds have a wing that has been buying up street after street of rental properties.
This envy of landlords has been played on by the govt.
Now Lloyds will be the countries biggest landlord.. and hell will freeze over before they start worrying about their tenants.

Edited to add link - https://www.theguardian.com/business/2025/nov/10/lloyds-the-landlord-how-the-bank-quietly-became-a-big-rental-property-player

HMO solves that problem and allows councils to impose additional costs and burdens to landlords.

Like I said some are. A relative sold there’s to one.

the big companies …I don’t know
I wouldn’t bother checking them as it’s £7 per LReg checks so why would I 😂

You can check what properties Lloyds and Grainger are renting out on their websites.

They are all whole developments or parts of developments.

https://www.lloydsliving.co.uk/

https://www.graingerplc.co.uk/

While there is a future threat from these players (a threat that has been active and up and down for over a decade) they are small players currently.

your link says Lloyd’s owns 7,000 units- a recent google puts this at 5,000z

none the less, a large housing association has >100,000 units.

it’s not a particularly attractive market for them to be honest, and profit making corporate landlords are starting to realise it’s a lot of work for little return. I wouldn’t be surprised if they start to withdraw rather than grow.

Well hopefully they’ll be bought by people for a family home and long term maybe house prices will fall which will benefit ftb. Because landlords won’t be hoovering up properties.

However there’s a risk they’ll be snapped up my professional landlords who have a company set up and don’t pay income tax?

but I think there are two main issues. Firstly most landlords will just put rent up so it’s the tenant who suffers. But also if there will ultimately be less rental properties available Let’s remember not all renters are people saving to get on the property ladder. Renting suits a large amount of people such as those knowing they won’t stay in a specific location long term. Then there are people who no matter how much property prices fall are never going to get a mortgage of any amount due to not working, etc. what are they going to do?

Charging below market rent isn't benevolent. If you have a good Tennant your better off keeping them. Say you put up your £1000 pm rent up by 10% but you have a churn of Tennants, one months void is your 10% gone. But you also need to paint, maybe replace carpets, deep clean. It's never a month, it's more void than that. Staying under market rate is good business overall where everyone wins.

New tenancies absolutely never go on under market value. It's if they stay, I dont put the rent up every year. But I was also doing this direct not via a agent so that's another saving to both landlord and Tennant.

If I was absolutely mad and did decide to rent my house out again I'd go for the top rent I could possibly get after all the recent changes. But long term tennants change things a lot. It's very different res letting every 12-24 months than for every 5 years plus.

Thanks for clarifying.

I increase rent every other year. Last time I increased it by 6%, tenant was not happy but I stuck by it.
Kept rent the same this year but will
increase it next year.

Exactly. They are not buying up 100+ year old housing stock, with all the associated liabilities. Also, if the government bring in the minimum EPC rating of ‘C’ by 2030, those solid wall houses are going to difficult to shift, unless priced accordingly.

In my home town landlords are buying every terraced victorian house and making 3 bed house into 5 room hmo's. Every house on my old street is a HMO so someone is buying 120 year old houses and making lots of money in the process.

Is there a max % landlords can increase rent each year

One of our DS has been told his rent will increase from £570pcm to £670pcm

??? anyone know if this sort of uplift is allowed ( rent to increase next September )

Wow, okay.

Here's the rub;

Not everyone wants to own and people looking for a short term lease aren't going to buy.

People move for a job, university, to be with someone they've met etc. People being forced to move because the landlord wants to move a new tenant in.

There are so many different situations that require rentals to exist. If you get rid of landlords, the amount of housing available to rent will evaporate very fast.

Renting is also a stepping stone to owning as it teaches you how to manage your finances well enough to service a mortgage.

If you want the state to be THE landlord, which it sounds like you do, just say it. In plain English. Otherwise you come off as incredibly jealous.

They’re just fly by night slum landlords. Not corporate landlords

There aren’t any controls over the rate private rent can increase. It’s a free market.

The council can stop this. There’s a section something notice which prevents hmo. Dd is an architect and specialises in converting houses to hmos. They’ve been run out of numerous cities

It’s called Article 4 and removes permitted development rights for someone to turn a house into an HMO without planning permission.

Not necessarily. For a higher rate tax payer mortgage interest is not fully deductible (it is taxable and then given a 20% credit back) so someone paying mortgage interest can be taxed on a loss.

Most landlords are professional landlords these days. The annual landlord report showed that ‘amateur’ landlords and those with small portfolios are selling up.

rates are already higher for landlords as I’m sure you know. Do you want to be in a 5yr fix on a large rate or go for a 2 year where you might not pass serviceability now. It’s difficult

They don't seem to want to in my home town. It's really sad and I would hate to live on my old street now.

There is real value for a LL in aving a good long term tenant. If they relet every 2 years or so they would have the expense of refurbishing the property. You have a reliable long term tenant who rarely bothrs you unless there is an urgent repair and you are quids in. Many tenants will do minor repairs like unblocking the loo and fixing a cupboard hinge or a door handle..So you dont have the expense of calling a plumber or a tradesman. If the LL tries to push the rent too high its worth the tenant negotiating with the old rent as a starting point. Or demanding something for themselves like a new bathroom or kitchen if the old one is outdated. You cant expect someone who has lived there for 10 years without refurbishmant to pay a market rent because the place will be like a time warp. And if they cant find anywhere else to rent in their price range then you could be really stuck. Evicting tenants is expensive, stressful and a very lengthy process. And not so easy under the new legislation which is coming in.

But those things are then passed onto the tenant in rent increases.

Any other business whether it was hotel accommodation, food, water or the cost of a biro passes on increases needed to maintain the business.

My heart bleeds for all those hard pressed landlords.

Tell you what, I’ll put you out of your misery. I’ll buy it from you. I’ve been trying to buy for ages in my local area (of outstanding natural beauty) but I keep getting priced out by all the second home owners and air BnB entrepreneurs who are seeking to profit from homes in my area.

I am ready, funded and willing to buy, and as a would be local owner occupier I would love all the 2nd home owners and air BnB peeps to piss off and stop hogging all the properties that locals need and are willing to buy.

So do sell up please. There are tonnes of renters who are being blocked from owning homes by you avaricious vultures.

There is a housing crisis. There are homeless families in temporary accommodation. There are not enough homes. And people cant buy an affordable home, because all the affordable homes were bought up by landlords through buy to let. I say this as someone who previously let a house - things have to change, and anything that helps to right this unbalance is good. If you cant afford it, put the house on the market and let a family buy it.

Agree, we've just kindly been told our rent is going up £40 a month from Jan 😪😪