Urgent actions for landlords ahead of year-end

In Episode 6 of Mortar and Margins

What’s wrong with taxing the rich to pour cash into public services
Looming deadlines for property investors to get ahead of new regulations
How to invest £800,000 in property

The conversation around how to fund Britain’s public services is reaching a fever pitch. As the gap between the wealthiest and the poorest continues to widen, some political figures are proposing radical shifts in how we view the national economy and private wealth. At the heart of this debate is a provocative idea: a direct tax on the assets of the multi-millionaire and billionaire class.

Zachonomics

One school of economic thought suggests that the current focus on fiscal restraint is misguided. The argument is that the UK economy is not limited by “other people’s money” but is supported by the Bank of England. From this perspective, anything the nation has the capacity to do, it can afford to fund. It’s a case put frequently by Green Party leader Zach Polanski.

The core of this strategy relies on spending multipliers. Proponents, led in contemporary UK politics by Polanski, argue that every pound invested in public services generates more than a pound of economic activity as it circulates through the community. Conversely, they suggest that storing vast amounts of money in stagnant assets only serves to widen the inequality gap, leading to a breakdown in social structures.

Proposing a 1% Asset Tax

To bridge the funding gap for public services, the Green Party calls for a targeted wealth tax. The proposal is straightforward:

A 1% tax on assets for those worth £10 million or more
A 2% tax on assets for those worth £1 billion or more

Estimates suggest this could inject between £15 billion and £25 billion directly into the economy. The message to the ultra-wealthy is blunt: contribute a small percentage of your holdings voluntarily to help the country, or face more aggressive redistribution measures later.

The Reality of Global Mobility

While the idea of a wealth tax appeals to a sense of social fairness, it fails to account for the reality of modern wealth. High-net-worth individuals are often globally mobile. If a tax regime becomes too punitive, those in the top bracket—who may already own multiple properties in various international locations—can simply choose to move their tax residency elsewhere.

We have already seen the complexities of this with the debates surrounding Non-Dom status and the policies of both Rachel Reeves and Jeremy Hunt. Applying a tax to assets is significantly more difficult than taxing income, primarily because assets are often tied up in property or international investments that are not easily “married” to one specific country.

Economic theory hits reality

The fundamental disagreement remains whether these populist economic ideas can translate into smart, sustainable policy. While the goal of repairing social structures is noble, the risk is that aggressive asset taxation could trigger an exodus of capital.

For the property market and the wider economy, the challenge is finding a balance. We must fund the services that keep society functioning without alienating the investors and property owners who contribute to the nation’s financial ecosystem.

Year-end to-do list

While the national debate focuses on the ultra-wealthy, everyday landlords are facing immediate, legislated changes. The Renters’ Rights Act is set to fundamentally alter the relationship between landlord and tenant.

Property owners should consider four critical actions before the new landscape takes hold:

Review Rent Increases: New rules will make it easier for tenants to challenge rent increases. To ensure continuity and a stable revenue stream, landlords should consider necessary adjustments before May 1, 2026.
Damp and Mold Protocols: Proactive measures are no longer optional. Landlords must take reports of damp seriously and move beyond telling tenants to simply “open the windows”. Installing positive input ventilation systems during refurbishments is becoming a necessity to future-proofing properties.
Tenancy Management: Some landlords are currently performing a “clean house” by reviewing difficult tenancies or cases of anti-social behaviour before security of tenure becomes even more rigid.
Strategic Portfolio Assessment: Student landlords, in particular, need to decide if they will continue in that sector or move toward social housing or professional HMOs due to the increased risks associated with the end of fixed-term tenancies.

The case of Lonan O’Herlihy

While we don’t cover a lot of popular culture, the recent legal action by former Made in Chelsea star O’Herlihy offers an opportunity to examine the future of different assets.

According to The Telegraph, the celebrity is seeking £5 million from the estate of his mother’s former partner. A list of his requests published by the paper includes:

A £3 million property in South Kensington
A £250,000 vintage Mercedes
A Patek Philippe watch
A painting by Melchior d’Hondecoeter
£800,000 for a property investment

Luxury London property has been underperforming for some time, and looks set to continue to do so. Plus the mansion tax will impose significant additional costs. Luxury items have proven better stores of value in recent times, with the vintage car market proving particularly strong because of a shortage of supply. Nevertheless, the climate around targeting the wealthy may spell the end for the capital gains tax exemption such assets currently enjoy. More portable goods – such as the watch – have the advantage of being easily transportable across jurisdictions.

We’re not an art market publication, so no comment about the potential value of oils depicting Dutch birds, but £800,000 to invest in property is still a huge opportunity, even accounting for recent changes in regulation.

Leveraging the cash and selecting a portfolio of cheaper properties could yield an instant paper return as a result of the discounts the buyer could negotiate and rental income would offer a meaningful return even in year one. But if Lonan’s reading, it’s equally easy to destroy your investment with the wrong decisions, so make sure you do your homework, or consult Propenomix, before you commit.