Nottingham Building Society Launches New Products to Ease Pressure on Landlords

In direct response to the Chancellor’s announcement of a Property Income Tax (PIT) rise, Nottingham Building Society has launched a new suite of buy-to-let (BTL) products designed to help landlords manage increasing financial burdens.

The new range introduces lower-rate, higher-fee options, providing investors with greater flexibility to handle outgoings at a time when rising tax burdens are compressing rental yields.

Key Product Details:

• Company Landlords: The society has reduced its headline rate for company landlords from 4.99% to 4.48%.

• Personal Name Landlords: A similar suite of products is set to launch tomorrow, with rates starting from 4.24% for landlords borrowing in their personal name.

Crucial Affordability Boost

A significant benefit of the new fee structure is the positive impact on affordability calculations. Landlords opting to pay the fee upfront will require 10% less rental income to meet affordability criteria, while those who add the fee to the loan will require 6% less. This measure is specifically designed to help offset the financial impact of the upcoming tax changes.

The New Tax Context

The new products arrive following Chancellor Rachel Reeves’ confirmation last week of a 2% rise in Property Income Tax (PIT), effective from April 2027. This increase will raise the tax rates for landlords to:

• Basic-rate: 22%

• Higher-rate: 42%

• Additional-rate: 47%

Matt Kingston, Sales Director at the society, commented on the launch: “Landlords have taken repeated blows in recent years, but they remain a vital part of the UK’s housing ecosystem. The latest tax rise 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 to stay financially resilient when margins are tighter than ever.”

He concluded by stressing the society’s commitment to a balanced market, “offering practical support at a moment when the sector needs it most.”