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£26 Billion Tax Hike: Rents Set to Rise

11/27/2025

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Story summary
  • The budget includes £26 billion in tax increases, including a two percentage point rise in property income tax for landlords starting April 2027.
  • Conservative leader Kemi Badenoch criticized the plan, saying it will raise rents and push landlords out of the market.
  • The Office for Budget Responsibility warned that lower landlord returns could reduce rental supply and push rents higher, with the average rent in Britain at £1,385 per month.