Landlords face new PRS database and tax changes, prompting calls to sell
UKPulse Property Desk
Landlords are being encouraged to sell properties sooner rather than later due to upcoming changes in regulations and property income tax rates, with a new PRS database rolling out from December 15.
- The PRS database will begin rolling out across England on December 15.
- New property income tax rates of 22%, 42%, and 47% are expected in 2027, alongside Making Tax Digital.
- Rightmove reports an average of 216 days to find a buyer and complete a property sale.
Landlords are facing new regulatory and tax changes, with the next phase of the Renters’ Rights Act beginning on December 15. This date marks the start of the PRS database rollout across England.
Further changes are anticipated in 2027, including new property income tax rates of 22%, 42%, and 47%, as well as the introduction of Making Tax Digital. These upcoming changes are creating an incentive for landlords who wish to exit the Private Rented Sector (PRS) to sell their properties sooner.
The selling process can be lengthy, with Rightmove indicating an average of 216 days to find a buyer and complete a sale. This timeframe suggests that landlords listing vacant properties today might still be waiting for completion by Easter.
Why this matters: The upcoming regulatory and tax changes could impact landlords' financial returns and administrative burden.
What this means for you: If you are a landlord, new regulations and tax rates could affect your property income and the process of selling your properties.