Industry reacts as Landlords to be hit with N.I tax

The measure is being put forward as part of efforts to plug a £40 billion fiscal shortfall while maintaining Labour’s pledge not to raise the main rates of VAT, income tax, or NI. Critics, however, argue that such a move would risk destabilising the rental market, hitting small and medium-sized landlords particularly hard and ultimately feeding through to tenants in the form of higher rents and reduced supply. 

Marc von Grundherr, Director at Benham & Reeves, commented: 

“This move smacks of political point-scoring rather than sound housing policy. Applying national insurance to rental income threatens to undermine rental supply by squeezing small and medium-scale landlords, who may pull up stakes or restructure. 

We’re already seeing supply pressures in many areas, pushing costs onto tenants. A policy with such serious unintended consequences deserves more scrutiny and a strategic approach, not partisan theatre.” 

Siân Hemmings-Metcalfe, Operations Director at Inventory Base, commented: 

“Layering yet another financial burden onto landlords, at a time when the Renters’ Rights Bill is about to reshape the sector, is a move too far. 

The focus should be on stability and encouraging long-term investment into the rental market, not short-term populism designed to plug holes in the Treasury's coffers. 

Policies like this risk deterring responsible landlords, which ultimately undermines the very protections and standards tenants are being promised.” 

Sam Humphreys, Head of M&A at Dwelly, commented: 

“The reality is that many landlords already operate on fine margins, and measures like this could be the tipping point that drives them out of the sector altogether. 

Once stock is lost, it is incredibly difficult to rebuild, and the people who pay the price are tenants facing rising rents and fewer housing choices. 

If the Government wants to improve affordability, it should be working to increase supply - not choking it further with punitive taxation.”