Landlords warn Chancellor John Healey's Budget tax raid is 'killing' buy-to-let and will force them to raise rents

Chancellor John Healey's 2 per cent income tax hike on rental income — piled on top of Rachel Reeves's identical rise from last year — means higher-rate landlords will pay 44 per cent tax on rent from April 2027. The Office for Budget Responsibility warned the combined measures collectively risk a "steady rise in rents" as landlords exit the market and remaining ones gain more pricing power. Renters whose average annual bills have already risen by £700 could face further cost increases.

Manchester landlord Harry Johnston, who owns 40 flats, says landlords have become 'the cash cow' and will raise rents in direct response.