Overview

• Officials are drawing up an option to apply National Insurance to rental income ahead of the autumn Budget, with reports suggesting it could raise about £2bn, and no decision yet taken.
• The exploration follows warnings of a £40–£51bn medium‑term shortfall in the public finances that is intensifying the search for new revenue sources.
• Property income is largely outside National Insurance today; official data show £27bn of net property income in 2022–23, and an 8% levy is modelled to raise roughly £2.18bn.
• Allies say broadening the base would keep pre‑election pledges not to raise VAT, income tax or employee NI rates, as the Treasury declines to confirm the plan and emphasises a focus on growth and protecting working people.
• Analysts and industry groups split on the likely effects, with concerns over higher rents or landlord exits set against arguments for equalising tax treatment and estimates that about 360,000 landlords could face bills of over £1,000.