Marriage, civil partnerships and why landlords should not ignore the obvious

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Marriage, civil partnerships and why landlords should not ignore the obvious

When Martin Lewis recently described marriage as the “ultimate inheritance tax hack”, he was making a technical point rather than a romantic one. The same principle applies equally to civil partnerships.

If you are legally married or in a registered civil partnership, you can leave your entire estate to your spouse or civil partner free of inheritance tax. If you are cohabiting without that legal status, you cannot.

For landlords with substantial portfolios, that difference is not theoretical. It can determine whether six figures remain within the family or are paid to HMRC.

This is not about sentiment. It is about structure.

The spousal and civil partner exemption landlords overlook

Under current UK rules:

• Each individual has a £325,000 nil rate band.

• There is an additional residence nil rate band of up to £175,000 when a qualifying main residence passes to direct descendants.

• Any unused allowances transfer to a surviving spouse or civil partner.

• Transfers between spouses or civil partners are exempt from inheritance tax, both during lifetime and on death.

In practical terms, a married couple or civil partners can often pass on up to £1 million free of inheritance tax, provided their estate includes a qualifying residence and planning is aligned.

Unmarried, non-registered couples cannot transfer unused allowances. There is no automatic exemption, regardless of how long they have lived together.

Only legal status counts.

For landlords sitting on appreciating property assets, that distinction materially alters long-term outcomes.

Why this matters more in later life and second relationships

Many landlords rebuild their personal lives after divorce or bereavement. They may have lived with a new partner for years. They may share property and financial responsibilities. Yet unless they marry or register a civil partnership, inheritance tax law treats them as unrelated individuals.

On first death, assets passing to an unmarried partner may face inheritance tax at 40% above available thresholds. There is no deferral. No automatic doubling of allowances.

In a £1.5 million property-heavy estate, that can translate into a substantial and immediate tax liability. That is capital which could otherwise stabilise borrowing, support the survivor, or preserve assets for children.

Entering into marriage or a civil partnership in this context is not simply a personal decision. It is a liability management choice.

The commercial lens landlords instinctively understand

Property investors routinely assess structure, risk and efficiency.

Viewed commercially, marriage or civil partnership does three powerful things:

1. It permits unlimited transfers between spouses or civil partners without inheritance tax.

2. It defers inheritance tax entirely on first death.

3. It allows full transfer of unused nil rate bands, effectively doubling the available thresholds for the survivor’s estate.

This creates time and flexibility. Time to refinance. Time to reorganise ownership. Time to plan succession deliberately rather than reactively.

For landlords focused on business continuity and legacy, that flexibility can be more valuable than any single tax saving.

For couples who choose not to formalise the relationship

There will always be personal reasons not to marry or register a civil partnership. That is entirely legitimate.

The key is awareness. Wills, trusts, lifetime gifting and life assurance can all mitigate exposure, yet none replicate the simplicity and certainty of the spousal or civil partner exemption. They introduce additional cost, complexity and ongoing administration.

Choosing not to formalise a relationship should be a conscious, informed decision, not a structural oversight.

Inheritance tax planning is rarely about the tax itself. It is about security for the person left behind, protection for children, and preserving the value of a lifetime’s work.

For landlords, marriage or civil partnership remains one of the most powerful structural tools available under UK inheritance tax law. Surprisingly, it is also one of the most frequently overlooked.

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Renters turn to commuter towns as demand soars

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Renters turn to commuter towns as demand soars

Demand has soared in commuter towns such as Esher as renters are priced out of cities, according to a new report.

Findings by SpareRoom reveal renters are seeking more affordable options as rent prices have risen sharply in recent years.

However, the flatshare website warns that as more renters migrate to cheaper towns, those areas may not remain affordable for much longer.

Esher has the highest demand in the UK

According to the report, Esher, a commuter town in Surrey, 30 minutes from London Waterloo station, has recorded one of the largest year-on-year increases in demand (+32%). It also currently has the highest demand in the UK, with an average of 11.2 people searching for every room available to rent.

Meanwhile, Kilmarnock, a Scottish town with strong transport links to Glasgow, has seen flatshare demand double over the past year, the sharpest rise anywhere in the UK. There are now seven people searching for each available room.

The average monthly room rent in Kilmarnock in 2025 was £588, allowing the typical flatsharer to save more than £1,000 per year compared with renting in Glasgow, where the average room costs £683 per month.

Elsewhere, commuter towns around Glasgow are also seeing rising demand. In Motherwell, located southeast of the city, demand has increased by a third, while in Paisley, to the west of Glasgow, demand has risen by 16%.

Huge problem with affordability

Matt Hutchinson, director of SpareRoom, has warned that rent prices in commuter towns could soar.

He said: “City living was once to flatsharers what suburban living was to families with 2.4 children. But the tides are turning. Given how high rents are now compared to where they were five years ago, people are faced with no choice but to chase affordability. It’s not an urban exodus, but it’s certainly flatshare sprawl.

“When even flatsharers are turning away from major cities, you know there’s a huge problem with affordability. More renters migrating to cheaper towns puts upward pressure on rents. These towns won’t be affordable much longer and then where do people go?

“Quite soon, renters will simply be out of options. It’s bad for the economy too which relies on a flexible workforce. If people can’t take advantage of new job opportunities, everyone loses.”

Rent prices have surged

The report also reveals that rents have surged by 40% over the past five years in cities such as Liverpool, reaching a record high of £555 per month in the final quarter of 2025.

Demand is also climbing rapidly in towns on the edge of the city. Birkenhead has seen demand rise by 33%, while Widnes is up 22%. Widnes now has the third-highest demand in the UK, with an average of 10.2 people searching for every available room.

In the Midlands, several towns are experiencing some of the strongest demand for rooms to rent anywhere in the country. West Bromwich leads the way, with 10.5 people per room, followed by Halesowen (9.8), Smethwick (7.4), Kidderminster (7), and Sutton Coldfield (6.7).

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Council unveils consultation on HMO planning rules

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Council unveils consultation on HMO planning rules

Landlords and residents are being asked to comment on proposed planning restrictions targeting shared housing in Kidderminster.

A six-week consultation has now begun with Wyre Forest District Council seeking views on introducing an Article 4 direction for HMOs there.

Anyone who lives, works or owns property locally, alongside landlords and sector groups, can submit an opinion.

The Article 4 direction will remove permitted development rights for changing family homes into small HMOs without consent.

Important opportunity

The council’s cabinet member for planning, Coun Dan Morehead, said: “We know many HMOs in Kidderminster provide good quality homes.

“But we’re also listening to residents who are concerned about the number of poorly managed properties in some areas.

“These proposals are about making sure HMOs are in the right places and meet the standards our communities deserve.”

He added: “This consultation is an important opportunity for people to tell us what they think, and we hope as many residents as possible will get involved.”

Planning permission needed

Under the change, landlords would need to apply for planning permission before switching use to properties housing up to six tenants.

The council points to a rising concentration of HMOs in some neighbourhoods.

It associates this with pressures on parking, waste services and the availability of larger homes.

If progressed, the direction would come into force in February 2027 so all new small HMOs would require formal approval.

The authority says this would enable it to manage location and consider neighbourhood impact before schemes proceed.

The exercise runs until 6 April, and there’s an online survey for people to use.

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