According to the latest Landlords Trends research from Pegasus Insight, 88% of landlords were concerned about the 2% rise in income tax rates on personally held rental properties.
Furthermore, 83% said tax and regulatory changes will make them more selective about the tenants they let to.
Pegasus Insight said the government should resist imposing further costs on landlords in the Autumn Budget.
Landlords revealed they will pass on these costs on to tenants – 64% said they will recoup these losses through higher rents.
Mark Long, founder and director of Pegasus Insight, said: “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.
Episode 2: Affordability : Powered by Partnership podcast from Newcastle for Intermediaries
Sponsored by Newcastle for Intermediaries
“The growing concern about the courts should also give policymakers pause. The new possession regime will depend heavily on a court system landlords can have confidence in, so ensuring it has the capacity to cope must be a priority.
“The private rented sector 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.”
