Landlords are being prompted to evaluate their rental property portfolios, with Property118 founder Mark Alexander suggesting a review of current investment strategies. This comes as a four-percentage-point increase in property Income Tax rates is announced, set to take effect from 6 April 2027.
Alexander encourages landlords to consider how much of their portfolio's retention relies on capital growth, their actual income after costs and tax, and the impact of future mortgage refinances. He also advises modelling the effect of the announced income tax increase on cash flow.
The guidance includes questions about whether landlords would make the same investment decisions today if they held the cash from selling their properties. It also asks about their commitment to retaining their entire portfolio and their intended long-term direction for the business.
Landlords are also encouraged to consider how their rental business aligns with their desired lifestyle and whether their intended beneficiaries are interested in continuing the business.