Almost two-thirds of landlords say they will look to raise rents to recover higher costs as the sector anticipates next month’s Budget. Research from Pegasus Insight found that 64% of landlords would seek to recoup losses through higher rents.
The findings come ahead of the Budget on 28 October. 88% of landlords expressed concern about a two percentage point increase in income tax rates applying to rental income from personally held properties, a figure that has risen three percentage points since the previous quarter.
Pegasus Insight’s Landlord Trends research also suggests that 83% of landlords believe tax and regulatory changes would make them more selective when choosing tenants. The research firm argues that further costs could also influence investment decisions and the number of homes available to rent.
Mark Long, founder and director of Pegasus Insight, stated that landlords are preparing for significant change under the Renters’ Rights Act, and the prospect of further tax changes in October’s Budget is adding to uncertainty. He added that further tax increases or additional costs could affect tenants through higher rents, reduced choice, or fewer homes available to rent.