In an address at the Commonwealth leaders’ summit in Samoa on October 24, 2024, Prime Minister Sir Keir Starmer articulated his stance on the definition of a “working person.” According to Starmer, those who derive their income primarily from assets or property investments do not fit within his interpretation of what it means to be part of the working class.

Starmer elaborated: “I would define a working person as somebody who goes out and earns their living usually paid in a monthly cheque, but I think obviously that is very broad.

“What I mean or who I have in my minds eye when I make decisions as a Prime Minister are the sorts of working people who go out, work hard and save a bit of money but don’t have the wherewithal to write a cheque to get out of difficulties.”

These comments have stirred speculation that tax increases on income derived from rental properties could be on the horizon, especially for landlords. Such a move would mark a notable policy shift that might hit property investors and owners hardest.

Bea Montoya, the COO of Simply Business, expressed concern on behalf of landlords, noting the apprehension among many property owners: “Landlords will feel concerned today with the Prime Minister failing to rule out income tax rises next week.

“Over a third of landlords say they are already planning to sell up in the next 12 months, removing five million rentable homes in an already stretched market.

“Tax increases are stated as the main reason for this, with 43% of those selling up saying this is what will push them out.

“The Budget could prove to be a key moment for the UK rental market.

“Some landlords might have the means and opportunity to weather the likely storm, but more tax raises will be the final straw for others – having already faced mortgage cost increases and expensive energy efficiency requirements for their properties.”

The remarks have spurred a strong reaction from the National Residential Landlords Association as well. Ben Beadle, its chief executive, pushed back against the implication that landlords don’t count as “working people,” arguing that property management and rental provision often represent substantial efforts and personal investment.

“It is simply not true that landlords are not working people,” Beadle said. “Official data shows that 30% of landlords are employed full time, with a further 10% working part-time.

“28% are self-employed in some way, while 35% are retired and are likely to rely on their rental income for their pension.

“Rather than stoking misconceptions, the Government needs to focus instead on the key challenge in the rental market, namely a lack of homes to rent to meet ever growing demand.”

As the prospect of new tax policies looms, the UK rental market could be facing another layer of complexity, with questions about affordability, availability, and viability likely to drive debate in the coming months.