‘This Budget is the final nail in the coffin for landlords like me’

Erik OlssonThu, October 29, 2026 at 6:00 AM UTC

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Amit Koshal, 48, says Labour is ‘just penalising people who are making sensible decisions’ - Belinda Jiao

As John Healey announced a fresh tax raid on landlords in the Commons on Wednesday, Amit Koshal was seeing patients at one of his dental practices in the East Midlands.

The 48-year-old has been diligently investing the profits from his business to build a small property portfolio to see him through retirement.

But the Chancellor’s plans to ramp up income tax for landlords have thrown his plans into doubt.

Income from property will rise by a further two percentage points from April 2027, on top of a similar move announced by Rachel Reeves a year ago.

It will mean property income tax will rise to 24pc for basic-rate taxpayers, 44pc for higher-rate taxpayers, and 49pc for those paying the additional rate.

It is the latest hammer blow for the buy-to-let sector, which has been turned into a cash cow by successive governments.

Mr Koshal owns a five-bed HMO (house in multiple occupation) between Nottingham and Derby, as well as a two-bedroom rental in Stamford, Lincolnshire.

“My hope had been at some point to stop doing as much clinical work as I’m getting older,” he says.

Now he’s not so sure – and blames Labour for undermining property investors like him.

“I think the Government’s just penalising people who are making sensible decisions. Some sensible people have got a property and tried to use that as an investment or a pension, and now they’re going for that as well.

“What about the person that’s actually worked really hard and maybe had one property or two on the side because they wanted to pass it on to the kids or use it as a pension?”

Coupled with the arrival of Making Tax Digital – which requires many landlords to submit five tax updates every year, instead of just one – he is thinking of selling up altogether.

He will not be the only one.

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Ian Fleming, 58, a retired landlord who lives in Wimbledon, bought a rental property 10 years ago, back when property investment seemed much more attractive.

After the Budget, he is also considering putting his property on the market.

“I don’t think [tax rises] were a surprise – it’s just another nail in the coffin for the landlords,” he says.

“I’m thinking of selling because alternative investments provide a better income with less risk. The Renters’ Rights Act shot up the risk profile and decreased the yield.”

Ian Fleming, 58, is weighing up whether it is worth staying in the buy-to-let sector at all - Heathcliff O'Malley

Labour’s landmark rent reforms came into effect in May, imposing new rules and regulations on landlords. “No fault” evictions were banned, while rent increases were limited to once a year. They were also required to sign up to a new landlord database.

Paul Shamplina, the founder of Landlord Action, says he speaks to landlords every day who have had enough and are planning to leave the sector completely. He fears the Budget will only embolden them.

“They have got rising costs, more regulation, the changes brought in by the Renters’ Rights Act, and now another tax increase to contend with,” he says.

“I really do wonder how much more the Government thinks private landlords can take.”

Paul Connors, 70, sold one of his three properties in Worcestershire and Devon after Labour first announced the Renters’ Rights Act in 2024. Now he’s desperately trying to sell the other two.

“It’s a bit of a shock that landlords are being penalised even more. These tax rises will see yet another landlord exodus,” he says.

“Our mortgage rate will rise in April and with this tax increase on top, it’s not viable to keep a property, and I just can’t do it any more.”

Paul Connors says he expects the Budget announcements to trigger ‘another landlord exodus’ - Jay Williams

The Office for Budget Responsibility has warned that the Chancellor’s tax raid would reduce rental supply and lead to a “long-term” rise in rents as landlords would ultimately pass the costs on to tenants.

Gareth Davies, the shadow business minister, says Labour’s red tape and tax increases have driven “countless” landlords from the market.

He adds: “The result will inevitably be higher rents and reduced choice for tenants, compounding the impact of Labour’s abysmal failure to deliver the new homes they promised.”

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Source: “AOL Money”