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Will Labour cancel ‘tax breaks for landlords’? Here’s what it could mean for rents and house prices

What Labour would do with tax on rental properties is one of the big unanswered questions of the election.

Janika ter Ellen
Last updated: 8 July 2026 | 5 min read
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The upcoming election raises questions about whether Labour will change interest deductibility rules for landlords, a move that would increase their tax obligations.

Experts are divided on the potential impact. Some predict slightly lower house prices but warn landlords may be forced to sell or increase rents. Others argue that broader market forces, not tax changes, are the primary drivers of rent prices.

While Labour's policy is unconfirmed, some commentators suggest a compromise, like allowing 50% deductibility, is a likely outcome.

What is interest deductibility anyway?

What happened last time Labour was in power?

A big call on what will happen next

So what happens to house prices if Labour changes it back?

Would rents go up if Labour changes the rules?

So will they do it?

Author

Janika ter Ellen Janika ter Ellen
News reporter