More than seven in 10 brokers have warned their landlord clients could sell properties amid reports the Treasury plans to apply National Insurance to rental income, according to Landbay.
The lender surveyed 50 brokers to gauge sentiment on reports that chancellor Rachel Reeve will make the change in the upcoming budget in November.
Over a quarter said they thought their landlord clients would sell some of their properties, slimming down their portfolios but staying in the private rental sector.
But almost 45% of brokers said they thought their landlord clients would sell all of their properties and exit the market — meaning 72% would sell off properties if the government were to go ahead with the move.
Just under a quarter of brokers (23%) said that they thought it would make no difference. Conversely, one in twenty brokers thought their landlord clients might expand their portfolio.
As such Rob Stanton, sales and distribution director at Landbay, is worried the chancellor’s plans could backfire.
“First, she’s not going to raise that much if a million landlords sell-up, however resilient the sector is in the face of market interference,” said Rob.
“Second, this could drive up rents — as demand for rental property outstrips diminishing supply and remaining landlords look to recoup the cost by raising rents.
“That could exacerbate the housing crisis for renters.”
