David Alexander, chief executive of DJ Alexander, Scotland’s largest lettings agency, has issued a direct warning to Chancellor Rachel Reeves: further taxation on landlords will harm tenants, not just investors.

Writing in The Scotsman, Alexander cautions that as Reeves prepares for next week’s spending review and fiscal update, she may feel pressure to raise revenue without breaching her manifesto pledge not to increase taxes on “working people.” He fears this could lead to targeting landlords and property investors under the argument that they fall outside that category.

But Alexander argues such a move would be short-sighted and counterproductive:

“Any additional costs imposed would, obviously, have to be passed on to the tenants… so while this may seem like a winning policy in terms of the optics of targeting landlords, the reality is that those people who actually depend on the private rented sector… would be the ones paying the higher taxes.”

Key Points Raised:

• Behavioural consequences: Higher taxes may encourage landlords to exit the market, reducing supply and intensifying the housing crisis.

• Economic warning: Tax policies based on current revenues may underestimate the market response, undermining the Treasury’s forecasts.

• Timing concerns: With demand at record levels, rental homes in short supply, and investment uncertain, Alexander stresses this is not the time to disincentivise landlords.

Context:

• Reeves’ statement, due Wednesday, will outline departmental spending plans for the next three years and capital investment for the next four.

• She has promised not to borrow for day-to-day spending and not to raise taxes on “working people.”

• However, speculation is building that new revenue-raising measures — potentially affecting landlords — could still be unveiled.

Final Word:

“This is not the time to make the market more difficult for landlords,” says Alexander, as calls grow across the private rental sector for policy stability and investor confidence.