Welsh Government's Land Transaction Tax increase baffling say landlords

In the wake of the Welsh Government’s publication of its Draft Budget for 2025/26, the NRLA has provided its response to confirmation that Land Transaction Tax (LTT) for landlords will increase.

In his Draft Budget, Finance Secretary Mark Drakeford announced that, as of 11 December, landlords will be subject to an increase of 1 percentage point in every LTT band. As a result, higher LTT rates will be as follows:

• £0 - £180,000 – 5% 
• More than £180,000 - £250,000 – 8.5%
• More than £250,000 - £400,000 – 10% 
• More than £400,000 - £750,000 – 12.5%
• More than £750,000 – £1.5m - £15%
• Above £1.5m - 17%

The change has major implications for landlords across the Welsh private rented sector, who will see the costs of acquiring additional property, and consequently of providing homes, increase significantly. 

Ben Beadle, Chief Executive at the National Residential Landlords Association, said:

“This move by the Welsh Government will do nothing to help renters who are already struggling to find a home to rent. 

“To discourage investment in the market with punitive taxation, at a time when Wales needs many more homes for rent, is a frankly baffling move.

“Today’s announcement will worsen the ongoing shortage of homes, narrow tenant choice, increase rents and cause misery for tenants.”

If you’d like to check out the Welsh Government’s Budget in full, click here to read the paper on the Welsh Government’s website.

-ENDS-
 

Notes to Editors 

• If you would like to see the Welsh Government’s Budget, you can read it in its entirety here.
• The NRLA’s press office can be contacted by emailing [email protected] or by calling 0300 131 6363. 
• Further information about the NRLA can be found at www.nrla.org.uk. It tweets @NRLAssociation.