Tenants continue to suffer because of heavy landlords taxes, says Propertymark

Propertymark has called for the continued reform of the private rental sector, as tenants continue to suffer because of heavy taxes on landlords.

Annual private rental prices rose by 6.1% in England, 7% n Wales, and 6.8% in Scotland in the 12 months to January 2024, new data from the Office for National Statistics’ Index of Private Housing Rental Prices for January 2024 has revealed.

In light of this, Propertymark has been one of the leading voices in the private rental market when it comes to easing a landlord’s tax burden.

Speaking with one student landlord, Propertymark found that taxes are making it difficult for people to operate as landlords, as it feels like people in general are getting taxed more, and that rents keep going up as a result because they need to find a way to pay for those increasing taxes.  

A private landlord, who also said they would talk to Propertymark on the condition of anonymity, said that landlords ‘are on the frontline politically’ and that it is tiring for landlords to be used ‘as the reason why rents are increasing when that is simply not true.’  

They added: “Government support that would be most welcome for us would be tax support or the relaxation of existing thresholds.

“More importantly for me, I would be pleased to see any government be more aware of the positive work we do as landlords and be more considerate and positive towards the industry.  

“As a group (private landlords), we manage a huge percentage of rental property, effectively being partners to the Government in the accommodation supply train. I feel the press and Government’s attitude is biased towards tenants’ issues, and landlords face an uphill battle in this regard.”

The negative perception that many people have of landlords, which the private landlord referred to, was reflected in one 2023 study, which quoted a 2017 YouGov study that discovered they were associated with being “greedy” “difficult”, and “wealthy.”

One landlord who was asked how they felt about people’s perceptions of them during the study said that the media “are always on the lookout for bad stories.”

Neither of the two landlords Propertymark spoke to are planning on cutting back on their portfolios for now, but if the UK Government fails to encourage private rental sector growth, this may lead to more landlords exiting the market in the longer term, as they already have, and furthermore, tenants will suffer for it in the form of higher rents.