Number of single property landlords affected by tax changes doubled: NLA

The National Landlords Association has reported that the number of single property landlords who anticipate that they will move into a higher tax bracket as a result of recent changes has almost doubled since 2016.

The NLA says that 16 per cent of landlords with a single property now say the changes will push them into a higher income tax bracket – a rise of 7 per cent from Q4 2016.

Individuals who only let out a single property are by far the most prevalent type of landlord, the association says, representing approximately 62 per cent of the UK’s landlord population.

The NLA says that any single property landlords forced up a tax bracket would need to increase the rent by more than 11 per cent in order to continue to make a steady yield from the property, which equates to as much as £116 per calendar month more for the average rental property.

NLA chief executive Richard Lambert says: “Single property landlords are responsible for providing a huge proportion of the UK’s private rented homes, and these findings show that, slowly, more and more are waking up to the fact their tax bills could be significantly higher in the coming years.

“A fifth (21 per cent) of landlords with just one property do not make a profit, and over the next few years those bumped up a tax bracket will find that their ability to continue to provide good quality housing will be seriously affected.

“More and more families and young couples are making their home in the private rented sector because they cannot either access social housing or afford to buy their own home. Affected landlords will have the choice of either increasing rents or selling up – so either way it’s the people they currently home who look likely to suffer the most as a result of this damaging tax change”.