""This move smacks of political point-scoring rather than sound housing policy. Applying National Insurance to rental income threatens to undermine rental supply by squeezing small and medium-scale landlords, who may pull up stakes or restructure. We're already seeing supply pressures in many areas, pushing costs onto tenants.""
""Layering yet another financial burden onto landlords at a time when the rental sector is about to be reshaped risks deterring responsible landlords. The focus should be on stability and encouraging long-term investment, not short-term populism designed to plug holes in the Treasury's coffers.""
The government is considering applying National Insurance contributions to rental income, adding NI on top of existing income tax on rental earnings. Treasury officials estimate the change could raise around £2 billion annually, helping address a £40 billion fiscal shortfall while keeping main VAT, income tax and NI rates unchanged. Rental income is currently exempt from NI; a landlord earning between £50,000 and £70,000 from property could face roughly an additional £1,000 per year. Industry voices warn the measure could squeeze small and medium landlords, destabilise supply and push costs onto tenants, reducing long-term investment incentives.
Read at Business Matters
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