Budget tax rise forecast to cost landlords £337 a year
A Budget tax rise is forecast to cost landlords about £337 a year on average, Savills analysis reported by The Times shows. Estate agents have warned Chancellor John Healey the property tax will push more landlords to sell, and a landlords’ chief said it is bad news for renters too.
Key Takeaways
- Savills forecasts the Budget tax rise will cost landlords about £337 a year on average, per The Times.
- The Financial Times reports the measure is expected to raise £575 million for the Treasury in 2028-29.
- Estate agents have warned Healey that the property tax rise will push more landlords to sell.
- A residential landlords’ association boss told Sky News the Budget is “bad news for landlords and renters,” with costs passed on to tenants.
How much extra tax will landlords pay?
According to The Times, Savills has forecast that the Budget tax rise will cost landlords £337 a year on average. That figure puts a clear price tag on the latest squeeze on rental income for private landlords.
The cash hit will vary by portfolio size and taxable rental profit, but the average forecast helps explain the sharp industry reaction. For investors tracking yields on higher-end lets in our luxury real estate and dream homes coverage, even a few hundred pounds a year compounds alongside other cost pressures.
Will the property tax rise push landlords to sell?
The Financial Times reports that Healey has been warned the property tax rise will push more landlords to sell. Estate agents say the measure will add to pressures already building in the private rental sector.
The FT also notes the tax change is expected to yield £575 million for the Treasury in 2028-29. Ministers are banking on that revenue, while agents flag a risk that more owners exit rather than absorb thinner after-tax returns.
Why is the Budget bad news for renters too?
In a Sky News interview, the boss of a residential landlords’ association said the Budget is “bad news for landlords and renters.” Asked whether costs would be passed on to tenants, the response was blunt: “Of course.”
That warning matters because fewer landlords and higher tax bills can shrink available stock. Remaining owners may seek higher rents to protect returns, leaving tenants facing tighter choice and stronger upward pressure on prices.
What should property investors watch next?
Investors should watch how quickly rental stock comes to market and whether asking rents firm as supply tightens. The £337 average tax cost is one line on the spreadsheet; selling pressure flagged to Healey and pass-through to tenants will shape the market ahead.
For now, the story is clear: a Budget tax rise with a priced average hit for landlords, a multi-hundred-million-pound Treasury take, and open warnings that renters may share the pain.