Tax chill for property
What New Tax Ideas Could Mean for Cornwall Renters and Landlords
With rents across the country still rising and new tax ideas being floated by the government, many landlords and renters alike are wondering what’s around the corner. In Cornwall—where the rental market’s already tight and shaped by holiday lets, student housing, and second homes—these changes could have a bigger impact than many think.
Let’s break down what’s happening, what it might mean for our patch of the country, and what you can do about it.
Rents Staying High – And Not Dropping Soon
According to the latest figures from Goodlord, the average rent in England hit £1,480 in August 2025. That’s nearly 3% higher than this time last year. The summer months always see some pressure on prices, especially in areas with a mix of tourism and student moves—but this isn’t just a seasonal spike. It’s part of a trend that’s been building for some time.
Here in Cornwall, demand for rental homes still far outstrips supply. That means even modest rent rises elsewhere can have a bigger knock-on effect locally, especially in towns like Truro, Falmouth, and St Austell. Whether you’re a renter trying to find somewhere stable or a landlord juggling costs, these pressures are very real.
National Insurance on Rental Income? What’s Being Proposed
One of the most talked-about proposals right now is the idea of making landlords pay National Insurance on their rental income. If it goes ahead, landlords could face an extra 8% tax on what they earn from letting property. For someone with £15,000 in rental income, that’s £1,200 gone before any other tax or expenses.
The aim from the Treasury is to raise around £2 billion to help fund public services—but for small, local landlords (who make up a big share of Cornwall’s rental market), this could be a real blow. Many already face rising mortgage rates, maintenance costs, and tighter regulations. An extra tax might push some to sell up or pass the cost on through higher rents.
At this stage, nothing is confirmed. The proposal is expected to be debated in the Autumn Budget later this year. But the very fact it’s being seriously discussed has already shaken confidence.
The Bigger Picture: Tax Talk Freezing the Market
It’s not just rental income that’s under the microscope. There’s been chatter about higher stamp duty, changes to capital gains tax, and tighter rules for second homes or high-value properties. In places like London, this uncertainty is already causing a chill. Buyers are sitting on their hands, sales are slowing, and many agents are reporting record low levels of homes under offer.
That mood could easily drift west. If investors and landlords start to feel the market’s shifting under their feet, it’s natural they’ll hesitate. And fewer buyers means fewer homes being let out—especially if landlords decide the sums no longer add up.
So What About Cornwall?
Unlike London or Manchester, Cornwall’s rental market is shaped by unique factors. Tourism, second homes, university lets, and a mix of part-time or retired landlords all play a role. That means the area is especially sensitive to national policies that don’t consider local realities.
If even a small number of landlords here decide to exit the market, the impact could be huge. We’re already short on long-term lets. Add in tax changes, and the supply could tighten even more—leaving renters with fewer choices and higher bills.
And while these ideas are aimed at raising government income, they could have the opposite effect locally—driving up housing stress and putting more pressure on councils, charities, and communities.
What Can You Do? Greenway’s Advice
Whether you're a landlord or a tenant, this is a time to stay alert—not anxious. At Greenway, the team is keeping a close eye on every development, and we’re ready to help you make sense of what’s coming.
For landlords:
Make sure your books are in order. If new taxes do come in, you’ll want to be ready.
Think about your long-term plan. Would a change in income affect whether you keep or sell a property?
Stay in touch with us—we’ll be offering guidance and support if the changes go ahead.
For tenants:
Talk to your landlord or agent early if you’re worried about costs.
If rent increases are likely, knowing in advance gives you time to plan or ask for support.
Keep an eye on any updates—we’ll be breaking them down clearly.
Final Thoughts
Right now, it feels like change is in the air. The property world is waiting to see which tax ideas become reality, and how they’ll affect renters, landlords, and the housing market as a whole.
Whatever happens, Greenway is here for Cornwall. We’ll keep things simple, give honest advice, and make sure you’re never left in the dark.
