The Government may feel that there is a bit more fat on the calf of property revenues and HM Treasury can take some of it, but a lot of careful thought is needed, because although these plans might generate some additional revenue, at what cost?

Landlords are already being clobbered by tax and regulatory changes which have reduced their profits and increased operating costs. On top of that, the Renters’ Rights Bill is imminent.

As it is, most agents and landlords appreciate that there aren’t enough rental properties on the market and if this plan to charge National Insurance (NI) comes to pass, this extra tax may just be the final straw.

This could result in in even lower supply, creating less choice, lower standards and high rents which is what governments want to avoid.

Not appreciated

As we have seen with the recent property tax proposals, it is all very well to put these feelers out to gauge reaction but what isn’t always appreciated that even the rumour of change can be enough to put people off.

Buyers may be wondering why they should pay stamp duty now if they won’t have to after the Autumn Budget if changes are introduced. This could have the effect of compromising the market.

I have already spoken to two landlords this morning who are asking ‘what’s the point?’ following the NI rumours.

Anything that is unsettling and compromises confidence is bad news for the housing market, even if it never actually comes to pass.

Jeremy Leaf is MD of his eponymous North London estate agency and also a former RICS Residential Chairman.