Prime Minister Sir Keir Starmer spoke at the Commonwealth leaders’ summit in Samoa on 24th October 2024, stating that those who receive income from assets and property do not fall under his definition of a “working person.”
Starmer said: “I would define a working person as somebody who goes out and earns their living usually paid in a monthly cheque, but I think obviously that is very broad.
“What I mean or who I have in my minds eye when I make decisions as a Prime Minister are the sorts of working people who go out, work hard and save a bit of money but don’t have the wherewithal to write a cheque to get out of difficulties.”
Following these remarks, it appears that Income Tax rises may be imminent for landlords.
Bea Montoya, COO of Simply Business, said: “Landlords will feel concerned today with the Prime Minister failing to rule out income tax rises next week.
“Over a third of landlords say they are already planning to sell up in the next 12 months, removing five million rentable homes in an already stretched market.
“Tax increases are stated as the main reason for this, with 43% of those selling up saying this is what will push them out.
“The Budget could prove to be a key moment for the UK rental market.
“Some landlords might have the means and opportunity to weather the likely storm, but more tax raises will be the final straw for others – having already faced mortgage cost increases and expensive energy efficiency requirements for their properties.”
Ben Beadle, chief executive of the National Residential Landlords Association, said: “It is simply not true that landlords are not working people.
“Official data shows that 30% of landlords are employed full time, with a further 10% working part-time.
“28% are self-employed in some way, while 35% are retired and are likely to rely on their rental income for their pension.
“Rather than stoking misconceptions, the Government needs to focus instead on the key challenge in the rental market, namely a lack of homes to rent to meet ever growing demand.”
