NRLA cited in ‘war on landlords’ speech

Evidence from the NRLA has been cited in a speech by the Shadow Treasury Minister, arguing landlords are not fat cats ‘gaming the system’ but ordinary people responding to it. NRLA chief policy officer Chris Norris explains more. 

I’m sure I don’t need to tell anyone reading this that the Finance (No.2) Bill is currently before committee in the House of Commons. And that in this case that means a committee of the whole house, whereby any MP can interrogate the Bill, questioning the Government about various clauses. 

In theory this is democracy in action, where our elected representatives take a fine-tooth comb to the most important piece of fiscal policy in the parliamentary calendar.  

In practice, Governments very (very) rarely loses a significant vote related to finance bills.  

To lose such a vote generally requires a sizable government revolt and is often considered a matter of confidence for the Government.  

That does not, however, stop them from being a useful opportunity for opposition parties to poke Treasury bruises, and highlight flaws in announced policy. It is also a good opportunity for organisations like the NRLA to demonstrate opposition to elements of the Budget by means of briefing.  

Following briefing by ourselves, and others, the Shadow Treasury Minister, Greg Davies MP, tabled an amendment calling on the Government to publish an assessment of the impact of imposing new rates of Income Tax on property income which will increase by two percentage points from 2027.

War on landlords

During the debate he outlined why this would be beneficial, saying:  

“Government members may take great satisfaction in what could be described as a war on landlords, but we should pause and remind ourselves who many landlords are.  

“They are not barons or vast landowners; they are ordinary people doing what we have encouraged them to do for decades: taking responsibility for their future.  

“They are the couple—one parent works long hours in a steady job, and the other juggles work and family life—who save carefully and invest in a small property because they know that the state pension alone might not be enough when they retire.  

“They are the retired couple who inherit a modest flat from their parents—a flat that is not a windfall, but a source of security in later life—and who rent it out to supplement a fixed income.  

“These are not people gaming the system, as many Labour members have tried to suggest in the past, but people responding to it. They are good people. Forty-four of them are Labour MPs.” 

 He went on to cite NRLA, British Property Federation (BPF), and the Royal Institution of Chartered Surveyors (RICS), along with the Office for Budget Responsibility (OBS) in warning rents will rise as a result of this ‘landlord tax’. 

Lazy stereotypes

He explained, as we have argued, that it will be tenants that are the real losers, saying: “This new tax does not just hit landlords, though; it hits renters, too. The British Property Federation and the Office for Budgetary Responsibility have both warned that this measure could restrict the supply of private rental properties, adding pressure to an already strained market.  

The Royal Institution of Chartered Surveyors and the National Residential Landlords Association both say that rents will rise faster as a direct result of the Bill.  

New clause 12, in my name, seeks to force the Government not to rely on their stereotypes about landlords, but to assess the impact of their new renters’ tax on both the supply and cost of private rental properties.” 

I couldn’t articulate it much better myself, and it is reassuring to see that at least some members of parliament are willing to look passed the lazy stereotypes of the landed gentry. 

Even if, in this case, it is the party that brought us section 24, and the savaging of Capital Gains Tax (CGT) allowances when they occupied No.11 Downing Street.

What was the outcome?

Before anyone gets carried away, I should add that this amendment was defeated 350 to 167. The Government has the majority to defeat any opposition amendment with which it disagrees.  

Furthermore, the Exchequer Secretary to the Treasury, Dan Tomlinson MP, brushed aside his Conservative counterpart’s argument suggesting that the tax hike was to ensure that:  

“…taxation is fair and reasonable”  and that: “Landlords will still typically pay a lower rate of tax than their tenants…” 

Short of a major backbench revolt, which on this topic is about as likely as 2026 turning out to be the year Liz Truss’s YouTube channel wins an Educational BAFTA, this debate nor any effort to scrutinise the Finance Bill will get the Government to change tack, but it does provide a little insight into the work that goes on behind the veil in Westminster to shape party positioning.  

Potentially, it marks a shift in positioning on the centre-right to recognise the value and importance of landlords to communities and the economy. It’s just a pity they waited until after losing office to listen to what we spent 14 years telling them.  

I wonder if Rachel Reeves’ U-turn will be any more timely….

More information

For more on the NRLA’s response to the announcement of the income tax rise listen to our podcast below: