Survey reveals landlord confidence drops amid tax concerns
Only 28% of private landlords are confident that letting property will remain financially viable over the next five years, according to new research from LegalforLandlords.
The survey found that 40% of landlords plan to raise rents if they face higher taxes in this month’s Budget, while 16% are considering leaving the private rented sector altogether if additional financial pressures are introduced.
Budget concerns
Around three out of five landlords expressed pessimism about the upcoming Autumn Budget, with concerns about taxation and future profitability weighing on sentiment. Chancellor John Healey is not expected to raise Capital Gains Tax significantly, despite earlier speculation that rates could be brought in line with Income Tax levels.
Sim Sekhon, Group Chief Executive of LegalforLandlords, said: “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.”
Market implications
The findings come as the sector faces ongoing challenges, with landlords increasingly turning to agents amid regulatory complexity. The potential exit of landlords from the market could further constrain supply at a time when UK rental prices have reached new highs as supply falls.
When asked about measures to restore confidence, 30% of landlords favoured a reduction in Income Tax on rental income, while 27% backed lower Capital Gains Tax. A further 25% said tax relief would help increase the supply of private rented homes.
The survey highlights the ongoing tension between government revenue requirements and maintaining adequate rental housing supply in the private sector.
