Private rent in Britain now swallows 44% of the average wage
Discussion
https://www.theguardian.com/money/2025/oct/27/priv...
This got me thinking that "taxing landlords" is a pretty stealthy way of taxing people, albeit not directly. National insurance on rent is being touted to be in the budget next month, and that just means that private landlords are glorified tax collectors on behalf of the government. Of course if you have rental properties in a company (most MP's and chums do) then you don't have to pay those taxes but can still charge top tier rent.
I feel bad for people paying super high rents and never being able to afford their own home.
This got me thinking that "taxing landlords" is a pretty stealthy way of taxing people, albeit not directly. National insurance on rent is being touted to be in the budget next month, and that just means that private landlords are glorified tax collectors on behalf of the government. Of course if you have rental properties in a company (most MP's and chums do) then you don't have to pay those taxes but can still charge top tier rent.
I feel bad for people paying super high rents and never being able to afford their own home.
Yeah I left my small town & humble flat to go to uni as a mature student & follow a career. I could have bought my old place several times over with what I've paid in rent for bedrooms/apartments since. Economicaly I'd have been better off staying where I was and working in Tesco for the next 15 years.
Current rent/council tax combo is almost bang on 44% of my takehome.
Pay off my student loan this month, so there's a tiny sliver of silver lining. Wouldn't be doing that ever if I'd went to uni later. Millenials are f
ked. GenZ even more so unless the inverted population pyramid leads to them getting some inheritance while they're still young enough to do something with it. I work with younger people in entry level jobs & honestly don't know what advice to give them. Live with your parents for as long as you can and spend nothing!
Current rent/council tax combo is almost bang on 44% of my takehome.
Pay off my student loan this month, so there's a tiny sliver of silver lining. Wouldn't be doing that ever if I'd went to uni later. Millenials are f
ked. GenZ even more so unless the inverted population pyramid leads to them getting some inheritance while they're still young enough to do something with it. I work with younger people in entry level jobs & honestly don't know what advice to give them. Live with your parents for as long as you can and spend nothing!s1962a said:
and that just means that private landlords are glorified tax collectors on behalf of the government.
Interesting take - My father ran his own business for the whole of his working life, and points out that he "collected Millions in tax" (VAT) on behalf of the government for years and years and not once was he ever thanked for it. I think he wanted an annual thankyou card from the Government - there was some plan in the coalition time to provide individuals a breakdown of where their tax went, but it never came to fruition.
I suspect that this percentage may increase if NI becomes payable by Landlords as it may be added onto rents.
Net Zero ambitions mandating an EPC rating of at least C for all rental properties from 2030, and all new Tenancies from 2028 will probably cause further increases as Landlords are required to spend up to £15k for energy improvements.
I wonder if adding on NI to what Landlords have to pay would make rents received 'earnings', and potentially monies which could be paid into a SIPP?
Net Zero ambitions mandating an EPC rating of at least C for all rental properties from 2030, and all new Tenancies from 2028 will probably cause further increases as Landlords are required to spend up to £15k for energy improvements.
I wonder if adding on NI to what Landlords have to pay would make rents received 'earnings', and potentially monies which could be paid into a SIPP?
Oh, and are we surprised when those who own houses feel 'rich' when house prices rise, while the landlords pass on those increased house prices as increased rents...
We need to end this fallacy that increasing house prices endlessly makes us rich somehow. All it does is enslave us to rent and mortgage payments for life, with the only winners the banks who get to lend us even more, enslaving more of us to having to work more and more...
We need to end this fallacy that increasing house prices endlessly makes us rich somehow. All it does is enslave us to rent and mortgage payments for life, with the only winners the banks who get to lend us even more, enslaving more of us to having to work more and more...
POIDH said:
Oh, and are we surprised when those who own houses feel 'rich' when house prices rise, while the landlords pass on those increased house prices as increased rents...
We need to end this fallacy that increasing house prices endlessly makes us rich somehow. All it does is enslave us to rent and mortgage payments for life, with the only winners the banks who get to lend us even more, enslaving more of us to having to work more and more...
what are you suggesting, comrade?We need to end this fallacy that increasing house prices endlessly makes us rich somehow. All it does is enslave us to rent and mortgage payments for life, with the only winners the banks who get to lend us even more, enslaving more of us to having to work more and more...
fat80b said:
Interesting take - My father ran his own business for the whole of his working life, and points out that he "collected Millions in tax" (VAT) on behalf of the government for years and years and not once was he ever thanked for it.
I think he wanted an annual thankyou card from the Government - there was some plan in the coalition time to provide individuals a breakdown of where their tax went, but it never came to fruition.
When I check my tax on hmrc I’m pretty sure it shows a breakdown of where it gets spent.I think he wanted an annual thankyou card from the Government - there was some plan in the coalition time to provide individuals a breakdown of where their tax went, but it never came to fruition.
Leon R said:
OutInTheShed said:
Not sure it's really much different from when I was a graduate?
Young people didn't expect to rent a whole house or flat to themselves on a single salary back then.
When were you a graduate?Young people didn't expect to rent a whole house or flat to themselves on a single salary back then.
I think I took home about £500pcm and paid about £100pcm for a room in a shared house, in a relatively cheap bit of the South East. Having decided that working near London was a mug's game.
Until interest rates went into double figures, it was cheaper to buy than rent.
Leon R said:
Wouldn't that be 20% of your wage rather than 44%?
It would be 60% if I was renting the whole place for myself.Same as now, you can get a room in a shared house for £350 a month in many places.
Back then, same as now, lots of people on benefits rented places they couldn't afford if they got rubbish jobs.
As an amateur Btl landlord the juice just ain't worth the squeeze anymore. This and the renters rights bill that got approved today are the final nails in the coffin.
I will be selling my property and making more money by putting the money into a fixed interest savings account.
A family will unfortunately now be homeless, they can blame the Labour government for that.
So Labour think that landlords will keep taking this forever and not just sell up and get out?
I will be selling my property and making more money by putting the money into a fixed interest savings account.
A family will unfortunately now be homeless, they can blame the Labour government for that.
So Labour think that landlords will keep taking this forever and not just sell up and get out?
OutInTheShed said:
Leon R said:
Wouldn't that be 20% of your wage rather than 44%?
It would be 60% if I was renting the whole place for myself.Same as now, you can get a room in a shared house for £350 a month in many places.
Back then, same as now, lots of people on benefits rented places they couldn't afford if they got rubbish jobs.
It simply can’t be denied how much more expensive housing has got compared to any other non discretionary expense.
s1962a said:
POIDH said:
Oh, and are we surprised when those who own houses feel 'rich' when house prices rise, while the landlords pass on those increased house prices as increased rents...
We need to end this fallacy that increasing house prices endlessly makes us rich somehow. All it does is enslave us to rent and mortgage payments for life, with the only winners the banks who get to lend us even more, enslaving more of us to having to work more and more...
what are you suggesting, comrade?We need to end this fallacy that increasing house prices endlessly makes us rich somehow. All it does is enslave us to rent and mortgage payments for life, with the only winners the banks who get to lend us even more, enslaving more of us to having to work more and more...
ThingsBehindTheSun said:
As an amateur Btl landlord the juice just ain't worth the squeeze anymore. This and the renters rights bill that got approved today are the final nails in the coffin.
I will be selling my property and making more money by putting the money into a fixed interest savings account.
A family will unfortunately now be homeless, they can blame the Labour government for that.
So Labour think that landlords will keep taking this forever and not just sell up and get out?
Are they knocking your house down?I will be selling my property and making more money by putting the money into a fixed interest savings account.
A family will unfortunately now be homeless, they can blame the Labour government for that.
So Labour think that landlords will keep taking this forever and not just sell up and get out?
If everyone sells (I cba) prices go down and more renters can afford to buy. It’s not making anyone permanently homeless just redressing the rent/buy balance
What WILL happen is the mother of all recessions. A ton of people out there only get by by taking equity out of their house, and that only works if prices rise. Consumer spending will fall with house prices, unemployment will rise and the benefits bill will go even higher. You heard it here first
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