ACCIDENTAL landlords in North Wales will be among those impacted by Chancellor Rachel Reeves’ Budget speech.
It follows the announcement in the Chancellor’s statement that landlords face a 2% increase in income tax rates.
From April 2027, the property basic rate will be 22%, the property higher rate will be 42% and the property additional rate will be 47%. It will apply to landlords in England, Wales and Northern Ireland.
David Adams, Managing Director of leading North Wales estate and lettings agent Cavendish, said: “Almost a third of landlords are so-called accidental landlords and they will be among those most affected by this announcement, along with more traditional landlords who don’t use limited companies to run their portfolios.
“The consequences of the tax raid by the Chancellor will either be that landlords compensate by increasing rents or they decide this is the final straw and withdraw from the market.
“The tax increase comes just days after the Renters Rights Act became law which represents the biggest upheaval in the landlord and tenant sector in a generation.
“The combination of the Renters Rights Act and the Budget announcement will inevitably present opportunities for landlords to grow their portfolios as others reduce their portfolios or exit completely from the sector.
“We are already seeing an increase in enquiries from landlords seeking a health check and we expect this trend to only intensify as landlords continue to take stock.”
David said that the Government’s other big property-related announcement in the Budget concerning the new mansion tax would also negatively impact the market.
He said: “It is a bureaucratic nightmare given that it will require the first revaluation of council tax bands in almost 35 years.
“If the policy does ever go ahead, it will inevitably be beset by appeals by homeowners who find themselves being dragged into the mansion tax.”
Cavendish was established in 1993 and has offices in Ruthin, Mold and Chester.
