Big Agency Group Warns Tenants Will Bear Brunt of Tax Hike
Summary: The Property Franchise Group (TPFG) has warned that the Renters’ Rights Act and recent property tax increases will lead to higher costs for landlords, which are likely to be passed on to tenants through increased rents. The group highlights the importance of its Privilege programme in helping landlords and franchisees manage these changes.
TPFG Reports Growth Amidst Rising Costs
The Property Franchise Group, which owns well-known brands such as Belvoir, EweMove, and Fine & Country, has reported an 11% increase in revenues for the six months ending 31 October 2025, compared to the previous year. This growth has been supported by its Privilege programme—a set of initiatives aimed at supporting landlords and tenants—as well as strong mortgage and sales transactions, despite ongoing speculation about potential stamp duty changes.
Impact of Government Tax Changes on Landlords and Tenants
Following the government’s 2025 Budget, Chancellor Rachel Reeves announced new property income tax rates effective from April 2027: a basic rate of 22%, a higher rate of 42%, and an additional rate of 47%. These changes are expected to affect approximately 2.4 million landlords by the 2029/30 tax year. TPFG acknowledges that while these tax hikes are disappointing, they anticipate limited direct impact on their business operations. However, the group warns that landlords will likely pass these increased costs onto tenants, resulting in further rental inflation.
Significance of the Renters’ Rights Act and TPFG’s Response
The implementation of the Renters’ Rights Act, confirmed for 1 May 2026, introduces new regulations that will increase compliance costs for landlords. TPFG emphasises the importance of its Privilege programme in mitigating these impacts. The programme not only supports franchisees and landlords in adapting to the new legislation but also provides an additional income stream for the group.
CEO Gareth Samples on Navigating Market Challenges
Gareth Samples, CEO of TPFG, stated that the group is leveraging its expanded scale to capitalise on new income opportunities and deliver enhanced value to its stakeholders. He commented: “The uptake of our Privilege programme has been pleasing and is delivering tangible benefits, mitigating the impact of the Renters’ Rights Act. Underpinned by a strong franchise model and diversified revenue streams, we have seen strong momentum and significant organic growth in trading to the end of October, resulting in our expectations for the full-year profitability to be at least in line with market expectations.”
Implications for Landlords and Tenants
Landlords should prepare for increased operational costs due to the Renters’ Rights Act and higher property income tax rates. These costs are likely to be reflected in rental prices, potentially affecting tenant affordability. It is advisable for landlords to review their portfolios and financial planning to accommodate these changes. Additionally, engaging with support programmes like TPFG’s Privilege initiative may help landlords navigate the evolving regulatory landscape.
Further Reading and Resources
Source: www.landlordzone.co.uk
The Landlord Association (TLA)