Potential Proposal to Charge National Insurance on Rental Income for Landlords

The Daily Telegraph is reporting that the Chancellor, Rachel Reeves, is being urged to charge landlords National Insurance on their rental income.

An announcement could be made at the Budget taking place on 30th October, and given the Prime Minister’s warnings about tax rises, will this year see the final nail in the coffin for private landlords?

The rental market is already turbulent, and so careful consideration needs to be given to these proposals. Increasing taxes and imposing National Insurance on rental income could result in landlords selling up or putting the financial burden onto tenants.

It is entirely possible that the following could arise as a result of the implementation of these proposals:

Increased taxes resulting in landlords selling up, or raising rents
Tenants displaced from their homes – vulnerable tenants could be made homeless, increasing the burden on Local Authorities to re-house them. The Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government, Angela Rayner, has already advised of the lack of housing.
Impact on property values – a market flooded with properties could drive housing prices down which would affect the market as a whole – leaving some in negative equity.
It could however be a very welcome bonus for those seeking to get on the housing ladder. A reduction in house prices could finally mean that some first-time buyers could get on the housing ladder.

Our specialist residential property team can assist with any transactional or dispute requirements that could result from this proposal. For advice on any of the above, speak with our team using the contact button below.

Sheffield Office: 0114 3497000

Chesterfield Office: 01246 555111

info@brmlaw.co.uk

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