A property owner with an extensive portfolio has criticized the government’s recent Autumn Budget, calling it “an attack on landlords.”
Ahmed Khan, a 29-year-old developer from Hertfordshire, owns properties valued at over £4 million.
Known for previously sharing how he built his success by living rent-free with his parents, Khan is now voicing strong criticism against the government for failing to address housing affordability for first-time buyers and young people.
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In her speech on October 30, Chancellor Rachel Reeves presented Labour’s first Budget since their return to power after the July election, including tax increases totaling £40 billion to support the NHS and other public services.
The Budget also raised stamp duty on second homes to 5%.
“Like most landlords, I anticipated changes targeting us,” Khan told Absolutely Business.
“We’ve seen these measures coming for years, but I thought it might just be capital gains tax, not a stamp duty hike too—it was increased not that long ago.”
Khan expressed his disappointment over what he sees as landlords being unfairly portrayed as the culprits, adding, “These policies won’t deter large developers, only smaller landlords.”
Previously, buying a second home incurred a 2% stamp duty. With the new rules, an additional £5,000 would now apply to a £250,000 property.
Khan commented, “This feels like another policy that looks like it’s supporting equitable distribution or reducing private ownership, but it barely impacts the companies that could make a difference. Higher stamp duties, coupled with rising labor costs and inflation, only complicate development.”
He further explained the challenges landlords face: “People assume landlords are raking in huge profits, but, like any business, we work with tight margins. Squeezing those margins further only makes the risks outweigh the rewards.”
Khan believes these policies will lead to vacant homes and rising rental costs. “Large houses, like five or six-bedroom properties, aren’t viable for families anymore. Developers buy these to convert them into flats, but if it’s not profitable, they won’t proceed, and those houses will sit empty.”
Pointing to the government’s goal of building 300,000 homes annually, Khan argued that the new measures make development tougher.
“I recently finished a house conversion, and it was a real challenge. If these policies continue, property prices won’t fall as intended—they’ll likely go up.”
Khan added, “The public thinks these measures target landlords, but it’s the major corporations driving prices up, not the small landlords with a few properties.
This Budget does nothing to help young buyers. If they can’t afford to buy, rental demand and prices will rise.”
In his view, the Budget wrongly targets small landlords, potentially pushing them out while allowing larger property owners to expand.
“The bigger players will grow even larger, while smaller landlords looking for extra income will be squeezed out,” he concluded.
