Four in 10 landlords say they would increase rents where possible if the Autumn Budget raises the tax burden on the private rented sector, according to research from LegalforLandlords.
The survey of 544 UK private landlords found 59% are pessimistic about the Budget, with taxation dominating their concerns ahead of the Chancellor’s announcements.
Just 28% are confident that letting property will remain financially worthwhile over the next five years.
The findings come ahead of the Autumn Budget on 28 October, with landlords facing continued uncertainty over taxation alongside regulatory and energy efficiency costs.
TAX CONCERNS
Capital gains tax is the biggest Budget concern for 22% of landlords surveyed, while 20% identify income tax on rental income as their main worry.
A further 18% are most concerned about the cost of potential energy efficiency upgrades.
Asked how they would respond if the Chancellor increased the tax burden on landlords, 40% say they would increase rents where possible.
Another 18% would consider selling properties, while 16% say they would leave the private rented sector altogether.
The figures reflect landlords’ stated intentions rather than necessarily predicting how the market would respond to any tax changes announced in the Budget.
CONFIDENCE LOW
Asked what measures would improve confidence, 30% identify reducing income tax on rental income and 27% favour lower capital gains tax.
A further 17% would like mortgage interest tax relief introduced or increased.
When asked about measures to improve private rental supply, 25% favour tax relief for landlords, while 15% want lower compliance and regulatory costs. Another 15% believe the Government should prioritise building more social housing.
LegalforLandlords Group Chief Executive Officer Sim Sekhon (main picture, inset) says: “The message from landlords ahead of the Autumn Budget is clear: confidence is low, and further financial pressure could have consequences for both landlords and tenants.
“Landlords are running businesses and making long-term investment decisions. If the cost of providing rental housing continues to rise, some will look to increase rents where they can, while others may decide that remaining in the sector is no longer financially viable.
“The Government needs to consider the impact of any additional measures on the supply of rental homes. Improving the financial viability of being a landlord, alongside addressing the costs of compliance and regulation, could help support confidence and encourage landlords to remain in the market.
“The Autumn Budget is an opportunity to provide greater certainty for the sector. Policies that support a sustainable private rented sector will be important for landlords, tenants and the wider housing market.”
