Nottingham Building Society responds to property tax hike announcement by launching new BTL range

Nottingham Building Society has launched a new suite of BTL products designed to support landlords following the Chancellor’s decision to raise property income tax during the Autumn Budget announcement. 

The new range introduces lower-rate, higher-fee options — including a headline rate of 4.48% for company landlords, reduced from 4.99% — giving landlords greater flexibility to manage their outgoings at a time when rising tax burdens are compressing rental yields. Nottingham Building Society is also preparing to launch a similar suite of products for landlords borrowing in their personal name this Friday (5 December), with rates starting from 4.24% 

Alongside these additions, the mutual continues to offer its full suite of flat-fee and zero-fee products, ensuring brokers can access a wide spectrum of options to match varying portfolio strategies and affordability needs. 

These changes also mean landlords will require 10% less rental income to meet affordability if they pay the fee upfront, and 6% less if they choose to add the fee to the loan — helping to offset the impact of upcoming tax changes. 

Nottingham Building Society’s announcement comes days after the Government confirmed a 2% rise in Property Income Tax from April 2027, increasing tax rates for basic, higher and additional-rate landlords to 22%, 42% and 47% respectively. With net returns for many already under strain from regulatory and economic pressures, the specialist lender says the sector needs practical, sustainable solutions to remain viable. 

Matt Kingston, Sales Director at Nottingham Building Society, said: “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. 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. 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. 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. 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.”