Treasury Tax Plans Could Push Rents Higher

Legal Update to Watch: Treasury Eyes National Insurance on Rental Income

The Treasury is weighing up plans to apply National Insurance to landlords’ rental income. While nothing is confirmed, the move could have a knock-on effect for tenants.

Why it matters:

• Landlords already face higher costs from recent tax changes and new property standards.

• If another tax is added, there’s a real risk it will be passed on through higher rents.

• Demand for rental homes is growing fast, analysts suggest the UK will need close to a million more by 2031. Extra pressure on landlords could make meeting that demand harder.

What’s next:

• If the policy goes ahead, it may increase rents at a time when affordability is already stretched.

• A tax system that encourages investment in long-term, quality rental homes and supports energy-efficiency upgrades would deliver better outcomes for tenants and landlords alike.

Bottom line: It’s one to watch. The Chancellor’s decision could directly affect both the supply of rental homes and the cost of living for tenants.

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