Nearly 90% of landlords worried about tax

Nearly 90% of landlords are concerned about tax, specifically the 2% rise in income tax on personally-held rental properties, according to Pegasus Insight.

Pegasus’s survey of 567 landlords in the summer found that most (83%) are now becoming more selective about tenants as a result.

Some 64% plan to recoup losses through higher rents, while 91% are concerned about potential court backlogs for evictions.
The latter concern comes from the Renters Rights Act which has made it harder to evict tenants as a result.

Pegasus Insight’s Tenant Trends research indicates that renters are already conscious of the potential for additional landlord costs to feed through into rents.

More than a quarter of tenants expect rents to rise as landlords pass on the cost of complying with the Renters’ Rights Act, compared with just 9% who expect rents to fall.

“Landlords are already preparing for significant change under the Renters’ Rights Act, and the prospect of further tax changes in October’s Budget is adding to the uncertainty facing the sector,” said Mark Long, founder and director at Pegasus Insight (pictured above).

“The PRS needs a period of stability — further tax increases or additional costs could change landlord behaviour in ways that ultimately affect tenants through higher rents, reduced choice or fewer homes available to rent.

“The Budget should not add to those pressures.”