Nottingham Building Society has launched a new suite of buy-to-let products designed to support landlords following the Chancellor’s decision to raise property income tax in the Autumn Budget.
The mutual has introduced lower-rate, higher-fee options, including a headline rate of 4.48% for company landlords, reduced from 4.99%, to give landlords more flexibility as rising tax liabilities continue to compress rental yields.
A similar product range for landlords borrowing in their personal name will launch on Friday 5 December, with rates starting at 4.24%.
Nottingham Building Society said the additions sit alongside its existing flat-fee and zero-fee products, ensuring brokers can access a broad suite of options to meet different portfolio strategies and affordability needs.
The lender added that landlords will require 10% less rental income to meet affordability when paying the fee upfront, and 6% less when adding the fee to the loan.
The announcement follows the Government’s confirmation of a 2% increase in Property Income Tax from April 2027, raising rates for basic, higher and additional-rate landlords to 22%, 42% and 47%.
With returns already under pressure from regulatory and economic headwinds, the mutual said the sector needs practical support to remain viable.
Matt Kingston, sales director at Nottingham Building Society, said: “Landlords have taken repeated blows in recent years, from rising costs to tax changes, yet they remain a vital part of the UK’s housing ecosystem.
“The latest tax rise announced at the Autumn Budget risks pushing more good landlords out of the market. Our new range is about easing that pressure.
“By giving landlords more choice, lower monthly payments and greater flexibility, we’re helping them stay financially resilient at a time when margins are tighter than ever.
“We support a balanced market where renting is fair and buying is achievable.
“That means backing sustainable, quality rental provision and ensuring long-term renters still have a runway toward homeownership if they want it.
“As a mutual, our focus is always on people. These products are designed with landlords, tenants and the wider housing system in mind, offering practical support at a moment when the sector needs it most.”
