Generation Rent boss doubts claims of landlords selling up

The head of housing campaign group Generation Rent has dismissed warnings that landlords will exit the rental market, saying such claims should be treated “with a large pinch of salt”.

His remarks follow a Guardian report focused on the 2% increase in tax on rental income, announced by Chancellor Rachel Reeves in the November Budget.

According to Ben Twomey, chief executive of Generation Rent, the majority of landlords are financially capable of absorbing higher tax bills. He argues that landlords routinely pass on rising costs to tenants, particularly at times when wages are increasing and housing supply is failing to keep pace with demand.

Twomey also pointed out that while the forthcoming Renters’ Rights Act is expected to prevent landlords from evicting tenants purely to impose higher rents, it will not completely stop rent increases. He says landlords will still be able to justify higher rents by referencing advertised market rates, leaving tenants vulnerable to unaffordable rises.

He concluded that renters continue to need stronger safeguards against excessive rent hikes.

Under the new tax measures, landlords who pay tax at the basic rate will see rental income taxed at 22%. Higher-rate taxpayers will face a 42% charge, while those in the additional rate band will pay 47%.

Although the Guardian has historically taken a critical stance on landlords, the article highlights the real financial impact of the changes, including one landlord who estimates the tax increase will cost them £2,500 annually. The paper also references data suggesting that repeated tax changes by successive governments have contributed to a gradual reduction in the number of landlords operating in the private rental sector.