Consequently, many landlords have delayed investment and financing decisions until Chancellor John Healey has delivered his inaugural Budget speech in Parliament.
The survey, carried out by lender Landbay, further revealed that 49% of respondents described themselves as ‘very concerned’ and a further 31% ‘quite concerned’ that tax hikes would be on the Chancellor’s agenda.
When asked to identify the single biggest concern facing their buy-to-let (BTL) business, mortgage interest rates and finance costs topped the list at 29%, followed by further tax changes at 26%.
Some 22% of landlords said they had delayed decisions about purchasing additional properties while 16% said they were 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. Meanwhile, 11% were waiting before making changes to how their portfolios are owned.
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However, landlords remain confident about their own BTL businesses, with 28% expressing a positive outlook for the next 12 months, up from 22% in the previous survey.
Over a third still intend to purchase further rental properties over the coming year.
Rob Stanton (pictured), sales and distribution director at Landbay, said: “The strength of concern about further tax changes ahead of today’s Budget is perhaps not surprising, given everything landlords have already had to contend with over the last decade.
“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 which could make investment decisions even more difficult. We hope the Chancellor does not underestimate the vital role the private rental sector 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.”
