A building society has launched a new suite of buy to let products designed to support landlords following the Chancellor’s decision to raise property income tax.
The new range from the Nottingham Building Society introduces lower-rate, higher-fee options — including a headline rate of 4.48% for company landlords, reduced from 4.99%.
It suggests this gives landlords greater flexibility to manage their outgoings at a time when rising tax burdens are compressing rental yields. The society is also preparing to launch a similar suite of products for landlords borrowing in their personal name tomorrow, with rates starting from 4.24%
A statement says: “These changes also mean landlords will require 10% less rental income to meet affordability if they pay the fee upfront, and 6% less if they choose to add the fee to the loan — helping to offset the impact of upcoming tax changes.”
Last week Chancellor Rachel Reeves confirmed a 2% rise in Property Income Tax from April 2027, increasing tax rates for basic, higher and additional-rate landlords to 22%, 42% and 47% respectively.
Matt Kingston, sales director at the society, says: “Landlords have taken repeated blows in recent years, from rising costs to tax changes, yet they remain a vital part of the UK’s housing ecosystem. The latest tax rise announced at the Autumn Budget risks pushing more good landlords out of the market.
“Our new range is about easing that pressure. By giving landlords more choice, lower monthly payments and greater flexibility, we’re helping them stay financially resilient at a time when margins are tighter than ever.
“We support a balanced market where renting is fair and buying is achievable. That means backing sustainable, quality rental provision and ensuring long-term renters still have a runway toward homeownership if they want it.
“As a mutual, our focus is always on people. These products are designed with landlords, tenants and the wider housing system in mind, offering practical support at a moment when the sector needs it most.”
