Chancellor urged to ease landlord costs in Budget

Landlords need help with property improvements and greater certainty over tax in Chancellor John Healey’s first Budget, property sector figures say,

Adam Hills, client services director at LRG Living Markets, wants targeted tax reliefs, enhanced capital allowances or accessible finance to help pay for qualifying improvements.

He points to the government’s consultation response, which estimates average spending of £5,400 per property requiring work, taking account of the proposed £10,000 cost cap.

Alongside financial support, he also wants clear technical standards, realistic implementation periods and enough contractors to carry out the improvements.

He said: “A successful housing market requires both owner occupation and a thriving rental sector.

“The Budget therefore needs to give landlords and investors the confidence to provide more rental homes and improve those we already have.”

Landlord tax certainty

Sam Humphreys, Dwelly’s head of M&A, warns that further taxation could prompt smaller landlords to reconsider whether to keep their properties.

He said: “Further taxation could accelerate the consolidation of rental portfolios, with smaller and less efficient landlords increasingly likely to reassess their position or exit the market altogether.”

He added: “While this may create opportunities for professional operators to acquire and manage portfolios more efficiently, the government must be careful not to discourage investment in rental housing as a whole.

“What the sector needs is a stable, predictable tax environment that encourages long-term investment and professionalisation, rather than repeated interventions that make it harder for landlords to plan with confidence.”

Retaining existing landlords

Jeremy Leaf, a north London estate agent and former RICS residential chairman, is calling for targeted incentives both to attract new landlords and persuade existing owners to stay.

He also wants empty homes brought back into use more quickly and greater support for energy efficiency improvements, including retrofit work.

He said: “As with all Budgets, the Chancellor must perform a delicate balancing act – raising revenue without compromising growth – especially difficult for Mr Healey this time while protracted uncertainties in other parts of the world are contributing more than usual to rising interest rates and inflation.”

Roma Sharma, the managing director of Rushbrook, said: “The government must be careful not to view landlords simply as an additional source of tax revenue.

“The practical reality of providing good-quality rental accommodation is that costs continue long after a property has been purchased, from maintenance and essential repairs to safety requirements, property improvements and professional management.”