Together has warned that measures announced in the Autumn Budget could increase strain on both the private rented sector and older homeowners.

The specialist lender has released new research showing widespread public concern about the impact of the 2% rise in property income tax for landlords and the forthcoming annual charge on homes valued above £2 million.

PUBLIC EXPECTS RENT RISES AFTER LANDLORD TAX INCREASE

The chancellor’s decision to raise property income tax for individuals with rental property has prompted fears of higher rents. Together’s survey of 2,000 adults found that 86% believe landlords will pass the additional tax burden on to tenants. Among Baby Boomers, the figure rose to 94%.

Ryan Etchells, chief commercial officer at Together, said: “In our experience many of our landlord customers have chosen not to pass on increased costs to their tenants, instead absorbing extra payments associated with providing homes for tenants, which have been brought about by attacks on the private rental sector by successive governments.

“However, landlords with properties in their own names now face the taxman taking another sizeable bite out of their incomes thanks to Reeves’ rise in property income tax rates.

“The two percentage point hike will not only leaving landlords out of pocket, but renters too. Our research shows that the public understand that the extra costs will fall to those renting their homes.”

Etchells said continued regulatory and legislative pressure, in addition to the Renters Rights Bill, would likely result in higher rents next year. He also warned that some landlords may sell their properties if they can no longer make their portfolios viable.

Under the changes, property income tax will rise to 22% for basic-rate taxpayers, 42% for higher-rate taxpayers and 47% for additional-rate taxpayers from April 2027.

MANSION TAX BACKLASH

Together’s second survey focused on the annual charge due to be introduced on homes valued above £2 million from April 2028. The charge, widely described as a ‘mansion tax’, could reach £7,500 a year. According to the research, 21% of respondents consider the measure unfair.

The lender said that long-term house price inflation has pushed many ordinary family homes above the £2 million threshold, leaving older homeowners concerned about how they will meet the annual bill on modest retirement incomes. The term mansion tax, it added, does not reflect the reality faced by those affected.

Opposition was strongest in London and the South West, where 23% of respondents said the charge is unfair. Bristol, London and Plymouth recorded the highest levels of concern.

Etchells said: “The Baby Boomer generation – somewhat unfairly – tends to have a bad reputation due to buying homes in the 1970s–1990s when prices were low and disproportionately benefitting from house price inflation since then.

“However, with this new ‘mansion tax’ in place; as our research proves; it’s crystal clear that they will be hit hardest.

“This means ‘empty nesters’ and people who bought their property decades ago simply as a family home, not as an investment, will now have to cough up thousands just to continue living in their own home. That’s utterly unfair and will penalise them – adding even more cost pressures.”

Etchells added that asset-rich but cash-poor homeowners could face annual charges equivalent to a full year of state pension. He warned that lenders may need to factor the cost into affordability assessments for properties above the £2 million threshold.

The research was conducted by Censuswide between 26 and 28 November 2025 among a nationally representative sample of 2,000 adults.