A rumoured increase in Capital Gains Tax (CGT) is the biggest fear among landlords, according to new figures published by the National Residential Landlords Association (NRLA).
With the next Budget expected in the autumn—though no date has yet been confirmed—speculation continues that Chancellor Rachel Reeves may seek to raise additional revenue. In this context, CGT has emerged as a particular concern for property investors.
In a survey of 882 landlords conducted by Pegasus Insight on behalf of the NRLA, 83% identified a potential rise in CGT as their primary worry. Of these, 61% said they are “very concerned”, while 22% reported being “slightly concerned”. The findings point to growing apprehension over the cumulative effect of government policies on the rental sector.
The same survey found that:
- 53% of landlords are “very concerned” about the proposed Renters’ Rights Bill, with a further 35% “slightly concerned”.
- 73% are worried about the requirement for rental properties to meet an Energy Performance Certificate (EPC) rating of ‘C’ for existing tenancies by 2030.
- An identical 73% are similarly concerned about the extension of this requirement to new tenancies from 2028.
The NRLA says the results highlight a broader crisis of confidence among landlords, echoing previous research that suggests declining optimism about the future of the private rented sector.
Ben Beadle, chief executive of the NRLA, commented:
“These figures lay bare the fragility of investor confidence, with many feeling anxious about the overall direction of government policy as regards tax, rental reform and energy efficiency.
“We have a tax system which disincentivises investment, and a punitive Capital Gains Tax hike on the sale of rental properties is likely to exacerbate the situation.
“Fundamentally, these findings show that the Government must rethink its approach and urgently adopt pro-growth measures to reassure investors and encourage them to do what they do best – deliver the high quality private rented accommodation that tenants need.”
