Most landlords fear Budget tax changes

The majority of landlords are fearful of further tax changes, with almost 80% concerned about what the Budget means for them, according to Landbay.

The lender’s Q3 survey of over 2,000 landlords has found almost eight out of 10 landlords were concerned about the possibility of further tax measures affecting the PRS.

Of this cohort, 49% described themselves as 'very concerned' and a further 31% 'quite concerned'.

When asked to identify the single biggest concern facing their BTL business, mortgage interest rates and finance costs topped the list at 29%, followed by further tax changes at 26%, highlighting the financial pressures landlords are continuing to manage.

Such concerns, along with uncertainty ahead of the Budget, have already influenced some landlords’ investment plans. 

The survey found 22% have been delaying decisions about purchasing additional properties, with 16% holding off on remortgaging or refinancing existing borrowing.

A further 14% said they were delaying improvements to existing properties, while 12% were postponing decisions about selling properties and 11% were waiting before making changes to how their portfolios are owned.

Despite these concerns, the survey also suggests landlords remain relatively confident about their own BTL businesses, with more than a quarter (28%) expressing a positive outlook for the next 12 months.

In addition, 34% still intend to purchase further rental properties over the coming year.

“Ultimately, what landlords need from today's Budget is greater clarity and confidence about the environment in which they are operating, rather than further measures that could make investment decisions even more difficult,” said Rob Stanton, sales and distribution director at Landbay.

“We hope the chancellor does not underestimate the vital role the PRS and landlords play in ensuring we have a fully functioning housing market, particularly for those who can't, or don't wish to, be homeowners.”