UK Budget 2026: Landlords and taxpayers express concerns over potential tax hikes

As the UK prepares for the upcoming Budget on 28 October, various sectors are expressing concerns regarding potential tax and regulatory changes. A poll by AJ Bell of over 2,000 UK adults indicates that while general anxiety regarding tax hikes has decreased slightly compared to the previous year, significant concerns remain. Public sentiment shows opposition to raising income tax, increasing National Insurance, or freezing tax thresholds beyond 2031.

In the private rented sector, research from Pegasus Insight highlights growing pressure on landlords. Approximately 88% of landlords expressed concern over the 2% rise in income tax rates applied to rental income held in personal names. The study warns that further tax burdens could lead to increased rents, as 64% of landlords indicated they would look to recoup losses through higher charges. Additionally, 83% of landlords noted that tax and regulatory shifts would make them more selective regarding tenants. There is also significant concern regarding the Renters’ Rights Act and potential court backlogs affecting property possession processes.