"By giving landlords more choice, lower monthly payments and greater flexibility, we’re helping them stay financially resilient at a time when margins are tighter than ever"
- Matt Kingston - Nottingham Building Society
Nottingham Building Society has introduced a new suite of buy-to-let products following the Chancellor’s decision to raise property income tax in the Autumn Budget. The specialist lender aims to give landlords additional flexibility at a time when higher tax liabilities are putting further pressure on rental returns.
The new range includes lower-rate, higher-fee options. Nottingham Building Society highlighted its headline rate of 4.48% for company landlords, reduced from 4.99%, which is designed to help landlords manage monthly outgoings as they adjust to tightening returns. The mutual is planning to launch a similar range for those borrowing in their personal name on Friday, with rates from 4.24%.
In addition to the latest products, the lender continues to offer its full selection of flat-fee and zero-fee options. This enables brokers to access a broad set of choices that can suit different affordability requirements, portfolio strategies, and long-term plans.
The updated structure also affects affordability assessments. Landlords will require 10% less rental income if they choose to pay the product fee upfront, and 6% less if they add the fee to the loan. The lender believes that these adjustments can help offset the impact of the tax rise that will take effect in the coming years.
The announcement follows the Government’s confirmation of a 2% increase in Property Income Tax from April 2027. Basic-rate landlords will see rates rise to 22%, while higher and additional-rate landlords will face rises to 42% and 47%. Nottingham Building Society noted that many landlords are already under financial pressure, and said the sector needs practical measures that support long-term stability.
“Landlords have taken repeated blows in recent years, from rising costs to tax changes, yet they remain a vital part of the UK’s housing ecosystem,” said Matt Kingston, sales director. “The latest tax rise announced at the Autumn Budget risks pushing more good landlords out of the market.”
“Our new range is about easing that pressure,” Kingston added. “By giving landlords more choice, lower monthly payments and greater flexibility, we’re helping them stay financially resilient at a time when margins are tighter than ever.”
“We support a balanced market where renting is fair and buying is achievable,” Kingston continued. “That means backing sustainable, quality rental provision and ensuring long-term renters still have a runway toward homeownership if they want it.”
“As a mutual, our focus is always on people,” Kingston said. “These products are designed with landlords, tenants and the wider housing system in mind, offering practical support at a moment when the sector needs it most.”
