# Landlords face tax hike after Budget

> New tax rules threaten buy-to-let returns as landlords weigh exit.
- Title: Landlords face tax hike after Budget · MoneyWeek | Shortify
- Summary: New tax rules threaten buy-to-let returns as landlords weigh exit. Landlords face higher taxes and costs after Budget, with some considering selling…
- Keywords: rental, tax, landlord, buy-to-let, budget, renters-rights-act, mortgage, Landlords, face, hike, MoneyWeek
- Source: MoneyWeek — https://moneyweek.com/investments/buy-to-let/is-it-still-worth-being-a-landlord-after-the-budget
- Published: 2026-11-02T12:47:28+00:00
- Read time: 1 min
- Topics: uk, rental, tax, landlord, buy-to-let, budget, renters-rights-act, mortgage
## Budget tax changes
Chancellor John Healey announced higher income tax rates for rental income starting April 2027.
## Tax rates increase
Basic rate taxpayers will pay 24% on rental income versus 22% today, with higher rates rising to 44% from 42%.
## Landlord financial impact
Landlords face an extra £480 annual tax burden, reducing profits for basic rate taxpayers by £140.
## Renters Rights Act costs
New rules add annual registration fees and Ombudsman membership costs for landlords.
## Mortgage interest relief
Mortgage interest relief is a 20% tax credit based on mortgage interest payments.
## Landlord sentiment
Chris Norris of NRLA warns higher taxes could push more landlords to exit the sector.
## Profit calculations
Basic rate landlords see annual profit drop from £2,796 to £2,656 after tax changes.
## Mortgage-free landlords
Mortgage-free landlords face a £2,880 tax bill versus £2,400 today, reducing retained profits.
## Market pressures
Average UK rents rose 3.8% to £1,406 in the 12 months to September 2.026.
## Landlord decisions
Two-thirds of landlords plan to sell properties or exit the rental market within three years.
## Company ownership shift
Some landlords move portfolios to company ownership to avoid higher personal tax rates.
## Long-term outlook
Landlords may absorb costs, reconsider expansion, or sell as tax pressures mount.
## Key takeaway

Landlords face higher taxes and costs after Budget, with some considering selling properties.