Kimberley Harmer: Small landlords, big consequences. Labour risks harming the tenants it claims to protect

Kimberley Harmer is a Conservative activist and community Ambassador. She is a senior caseworker for Charlie Dewhirst MP and chairs a youth charity. 

As a small family landlord owning just three properties, my journey into property management was driven by a desire to provide stable homes for friends and families on low wages, families who would otherwise struggle to find accommodation. After my mother’s passing, we used our inheritance to support these families while creating a nest egg for our children’s future. Our goal has never been profit; we simply want to provide secure homes while planning for the next generation.

All our properties are mortgaged.

Rising interest rates have already stretched our finances, and now Labour’s Rachel Reeves’ proposed policies threaten to push us out of the rental market entirely. National Insurance on rental income, potentially at 8 per cent, combined with heavier compliance requirements under the Renters’ Rights Bill and further changes to stamp duty, could make holding our homes financially unsustainable.

The consequences would be immediate.

If forced to sell, the three families we currently house would face a stark choice: move into an already overstretched social housing system or risk homelessness. We ourselves would have to downsize, adjusting our living arrangements to cope with higher costs and taxes. This is not an abstract problem; it is deeply personal.

Policies designed to “protect tenants” could end up harming exactly the people they are intended to help.

History offers a warning.

George Osborne’s reforms to landlord taxation, the restriction of mortgage interest relief under Section 24, the extra 3 per cent stamp duty surcharge on second homes, and reductions in allowances, were sold as measures to “level the playing field.” In reality, they forced many small landlords to exit the market, discouraged new entrants, and contributed to the chronic shortage of rental properties that tenants face today, a problem Labour seems poised to exacerbate.

Reeves’ proposed 8 per cent National Insurance on rental income alone would add hundreds of pounds per property per year, on top of mortgages, licensing fees, possible EPC changes, and compliance costs that are already significant. Labour’s Renters’ Rights Bill, while well-intentioned, risks tipping the balance too far.

We understand the motivation behind the Renters’ Rights Bill.

Unscrupulous landlords who neglect maintenance and exploit tenants exist, and reforms to protect renters are overdue. However, policies that treat all landlords the same, risk penalising responsible small landlords who maintain homes and offer long-term stability. Blanket measures may unintentionally push conscientious landlords out of the market, reducing the very housing supply the legislation aims to safeguard.

At first glance, it might appear that forcing landlords to sell could help first-time buyers access homes. Indeed, some properties might be snapped up by those able to raise a mortgage. But this is only part of the picture. Many of the families who rent cannot afford a mortgage, are restricted by debt, or rely on benefits. Removing small landlords from the market threatens to push these households into social housing, which is already stretched to breaking point.

One policy “solution” risks creating an entirely new set of problems.

Small, responsible landlords are part of the solution, not the problem. Many, like us, provide homes for families who might otherwise rely on social housing. We maintain properties to a high standard, create stable tenancies, and support tenants who are building lives despite financial constraints. We also do a lot for vulnerable young people, offering support and mentoring that help them thrive in their communities. Punishing small landlords with higher taxes and heavier regulation does not solve the housing crisis; it exacerbates it.

Conservatives should be clear: private landlords are vital to Britain’s housing system. Policies should encourage investment in rental stock, stabilise the tax framework, and simplify compliance. Sensible regulation that protects tenants and landlords alike, without punishing small, responsible investors, will do far more to increase housing supply than politically motivated tax raids.

There is a shared goal here.

Both Conservatives and Labour want more homes. But Labour’s approach risks undermining the very sector that protects families who cannot afford to buy. We can increase supply and help first-time buyers without jeopardising renters who have nowhere else to turn. Housing policy must strike a balance: incentivise construction, support first-time buyers, and maintain a healthy private rental sector.

Labour may believe that attacking landlords is politically popular. But the families who will suffer first are the tenants, while responsible landlords are driven out, supply falls, rents rise, and taxpayers end up picking up the tab. Housing policy should reward responsibility, not punish it. Small landlords like us are helping Britain’s families today while securing a future for our children. We must not tax them out of existence tomorrow.

The challenge for government is clear: support housing supply in a way that protects both investors and the tenants who depend on them. Small landlords are filling a vital gap in Britain’s housing market, providing homes for families who might otherwise have no option. They also support the broader economy by stabilising communities, reducing reliance on state-funded housing, and keeping families in secure environments where they can work and contribute.

If Labour proceeds with National Insurance on rental income, heavy-handed regulations, and property tax reforms without safeguards for small, responsible landlords, the consequences will be predictable. Families will be uprooted, social housing will face greater pressure, and the private rental sector will shrink, all at a time when Britain desperately needs more homes, not fewer.

This is not about ideology; it is about people.

Families who rent from small landlords are not abstract statistics. They are neighbours, friends, and members of communities. Taxing and regulating responsible landlords out of the market is not just unfair, it is counterproductive. Policies must reward responsibility, encourage investment, and protect tenants. Anything less risks worsening the very housing crisis politicians claim they want to solve.