Budget offers little respite for housing and landlords

While the Budget on 28^th October was small for housing, the surprise was the further tax hike on private landlords’ rental income from April 2027. By either directly raising rents as landlords pass on these costs to renters or by further squeezing supply relative to demand, this raises the possibility that market rents grow by more than our forecast of 4.0% next year and/or growth stays higher for longer than we expect.