The majority of landlords are ‘very concerned’ about potential changes in the Autumn Budget, which could see National Insurance charged on rental income.
In a survey of 872 landlords, Pegasus Insight found 81% see the potential 8% tax as their number one concern.
Nearly three quarters (73%) are very concerned about potential changes to Capital Gains Tax on property sales, rising to 85% among those who have sold or intend to sell property in the coming year.
The survey revealed that this negative sentiment among landlords is also impacting investment activity in the PRS. Of the sample, 40% plan to sell at least one property in the next 12 months while only 7% plan to buy.
Mark Long, founder and director of Pegasus Insight (pictured above), said this could lead to further housing shortage pains in the PRS.
“Every indication from our data is that a growing number of landlords are reassessing their position,” said Mark.
“If the November Budget adds yet another layer of taxation, we can expect more to exit the market in 2026, further reducing rental supply at a time of rising demand.
“The government needs to tread carefully — short-term revenue gains could come at the expense of long-term housing stability.”
