Date Published 15 May 2026
New research from the Joseph Rowntree Foundation (JRF) and the Autonomy Institute is calling for a major rethink of landlord taxation — arguing reforms could improve affordability for tenants without damaging the private rented sector. The report claims most landlords in England have continued to outperform comparable investments in recent years, even after tax and rising costs. According to the analysis, 63% of landlords still achieved higher-than-benchmark returns in 2024, following particularly strong years in 2018 and 2021.
The report models a package of reforms including:
• Rent controls linked to inflation (CPI)
• Reversing Section 24 mortgage interest relief restrictions
• Applying National Insurance contributions (NICs) to rental income
Under the proposals:
• In-tenancy rent increases would be capped at CPI
• New tenancy increases would be limited to CPI +2%
• Average rents could fall by around £1,200 per year within six years
Section 24 relief could return
One key proposal likely to interest landlords is the reinstatement of full mortgage interest relief. The report argues this would support highly leveraged landlords who have been hardest hit by rising borrowing costs and Section 24 tax changes. Researchers say reversing Section 24 could actually reduce the number of landlords making losses by 2030 — even if rent controls were introduced.
NICs on rental income also proposed
To help fund the changes, the report proposes charging National Insurance on rental income. JRF says this would target landlords benefiting from the strongest returns, particularly those without mortgages, who are currently taxed more lightly than leveraged investors.
What does this mean for landlords?
While rent controls remain controversial across the sector, the report attempts to position the reforms as a 'balanced' approach — combining tighter rent regulation with tax relief for mortgaged landlords. The organisations behind the research argue the proposals would:
• Improve affordability for renters
• Protect rental supply
• Reduce financial pressure on leveraged landlords
• Deliver savings to the housing benefit system
The debate around landlord taxation and rent controls is likely to intensify as policymakers continue to focus on housing affordability ahead of further rental reform discussions later this year.
Importantly, these proposals remain part of an ongoing policy discussion rather than confirmed government plans. The report itself acknowledges the vital role private landlords play in housing supply and suggests reforms should avoid pushing responsible landlords out of the market. As always, any future changes are likely to involve consultation and phased implementation, giving landlords time to plan and adapt.
