Landlords are bracing for the Finances subsequent week amid rising fears that contemporary tax hikes might drive much more buyers out of the non-public rented sector, new analysis exhibits.
A survey by mortgage market specialist Pegasus Perception reveals deep nervousness throughout the buy-to-let market, with the proposed 8% Nationwide Insurance coverage levy on rental earnings now topping landlords’ checklist of considerations.
Greater than eight in ten (81%) say the measure is “very regarding”, in accordance with the newest Landlord Tendencies Q3 2025 report.
Almost three quarters (73%) say they’re very involved about potential modifications to capital features tax (CGT) on property gross sales, rising to 85% amongst those that have offered or intend to promote property within the coming 12 months.
The findings observe proof that 40% of landlords plan to promote at the very least one property within the subsequent 12 months, whereas solely 7% plan to purchase, signalling the continuation of a provide squeeze that has already pushed rents to report highs.
Mark Lengthy, founder and director of Pegasus Perception, commented: “The tax burden is now seen by landlords as each bit as threatening as regulation. The opportunity of a brand new Nationwide Insurance coverage cost on rental earnings is inflicting alarm throughout the sector, not simply because it might erode profitability, however as a result of it might additional undermine confidence in what has already turn out to be a closely taxed type of funding.
“Many landlords really feel that one other coverage shock, on high of CGT and the Renters’ Rights Act, might tip the steadiness and pressure them to promote.”
Lengthy added that the cumulative influence of recent taxes might have damaging penalties for each landlords and tenants.
“Each indication from our knowledge is {that a} rising variety of landlords are reassessing their place. If the November Finances provides yet one more layer of taxation, we are able to count on extra to exit the market in 2026, additional lowering rental provide at a time of rising demand.
“The federal government must tread fastidiously – short-term income features might come on the expense of long-term housing stability.”
