New research from LegalforLandlords indicates that only 28% of private landlords are confident that letting property will remain financially viable over the next five years. The survey also found that 40% of landlords intend to raise rents if they face higher taxes in this month's Budget.
Around three out of five landlords expressed pessimism regarding the upcoming Autumn Budget, citing concerns about taxation and future profitability. Additionally, 16% of landlords are considering leaving the private rented sector entirely if further financial pressures are introduced.
Chancellor John Healey is not expected to significantly raise Capital Gains Tax, despite earlier speculation. Sim Sekhon, Group Chief Executive of LegalforLandlords, stated that further financial pressure could have consequences for both landlords and tenants, potentially leading some to increase rents or exit the sector.
When asked about measures to restore confidence, 30% of landlords favoured a reduction in Income Tax on rental income, while 27% supported lower Capital Gains Tax. A further 25% believed tax relief would help increase the supply of private rented homes.