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Labour warned that more landlord taxes could trigger sell-off

A leading agent is warning that any additional tax on landlords could lead to property sell-offs and a further supply shortage.

Dominic Agace, chief executive of Winkworth, says further tax penalties on landlords - as called for by Labour leader Sir Keir Starmer in a speech to the Local Government Association confererence - could lead to a reduced number of rental properties and higher rents. 

Agace says: "This could push landlords to sell off more properties, reducing supply and leading to rent increases - which would be more costly to working people needing to rent than the 1.25 per cent rise in National Insurance. 


"A healthy private rental sector is essential and landlords can't be pushed much further in areas such as London where yields are already very low and rents have declined significantly as a result of the pandemic." 

Agace instead wants Chancellor Rishi Sunak to use next month’s Budget to make it more attractive for landlords to invest in the private rented sector in central London to ensure young people starting out on a career are able to find a home to rent.

In Winkworth’s latest episode of The Property Exchange podcast, Agace claims many landlords have sold off investment properties in central London. 

This was following tax changes on mortgage relief available to landlords and the introduction of a three per cent surcharge on second property purchases - which has led to a reduction in available rental properties. 


He comments: “30 per cent of homes in London are in the private rented sector. Young professionals coming to work in London to build a career need to be based in the capital and it is critical that housing stock is here and affordable. It is important that they are able to come to ensure our continuing status as a global centre. There has to be a balance of fairness between tenant and landlord.” 

He adds: “Prices in central London have come down so it is a good time to invest and make the most of the capital growth and increasing rents as people return to the capital. However, landlords need some fresh encouragement from the Chancellor to invest in London.” 

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  • George Dawes

    As incompetent as the tories are labour never fail to be more useless , totally out of touch with the real world most of them have never had a real job or have any idea how business works


    Labour hate landlords with a passion.
    That is only one proposal, as I am sure that there will be several others if they get in to power. (god forbid)
    If Labour were to form the next government (as bad as the Tories have been), it will result in major increases in tax for landlords.
    I will be watching the situation with interest and am already thinking of selling another property, if I get wind of any likely change.
    I am almost certain that we would be heavily penalised if we wished to sell, with respect to CGT increases and possible allowance reductions.


    most tory mps have never had a real job now--and it shows--even the pm!

  • icon

    What are they on about, LL should be encouraged to invest indeed. Then remove the shackles, 3% SD super tax on top of normal SD. They talk about fairness between LL & Tenants but we have that. The problem is the parasites outside chucking spanner’s into the works. Councils, Generation rent, Acorn, Shelter, Regulators + a whole lot more, as well as high running & maintenance costs + LL insecurity. Why would a LL want to invest at this dodgy time with inflation running wild, jobs disappearing or insecure, hike in National Insurance, Mortgage interest tax relief cut to 20%, say buy a property £500k in London probably a Flat as house is usually more, add £30’000. Stamp Duty or every £100k more another £8’000.SD,
    Does Rishi Sunak not understand the first 2 to 3 years rental income is for SD already paid up front to be recovered so what’s going to pay for everything else, this is a big penalty, (mortgage to pay tax levy). Then we have every other lame duck organisation lining up to add to our costs and have a pot at us, at uncertain times when the risk is too high. All the pointers to me are its more likely to hit the buffers than any capital growth get real.


    It will just gradually kill off the private landlord and concentrate the rental sector in the hands of the BTR sector with higher rents and no stamp duty or mortgage interest penalty, whilst making a killing from those who do choose to invest or stay in the market. There's no way anyone can make a sensible return on their investment unless they have spare money to invest in future capital growth. Oh, but then that benefit will also be largely wiped out by all the taxes too!

    Simple fact: government want to force everyone to live at home, own their own home, or rent from large company landlords - anything but the small private landlord.


    problem is that liblabcon are all wedded to massive state and hence massive taxation

  • icon

    Until such time as they have built enough social housing, which won't be in my life time, they will need private landlords.


    And the majority of that social housing will be in the form of high rise blocks, poorly constructed with ongoing maintenance problems a plenty. Sounds like we are going back to the 60/70's!
    In 10 years said high rise blocks will create no go areas where crime is rife and there is zero community spirit. Then a further 20 years later these blocks will be pulled down and labelled a failed project.
    We've seen it all all before... And so the cycle turns.....


    social housing should be abolished--the abuse from all is massive

  • icon

    Any sell off will be the better rentals sold to better off people, leaving only inferior properties for poorer people who won't ever be able to buy.

    This is "levelling down" which is what Labour always does, trashing educational standards, the economy, work ethic etc.

    They, Shelter, GR etc. are the real enemies of the poor. Perhaps private landlords are among their few friends? They're certainly the only group protecting decent tenants!


    So true Robert we are the good tenants best ally.
    The Tories pushing levelling up nah they are aiming at levelling down as well. It’s middle England that will be paying

  • icon

    They have yet to learn you can’t milk a dry Cow.


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