Seven in ten landlords are considering raising rents following the government's latest property tax changes, according to a survey commissioned by LegalforLandlords. This comes ahead of a four-percentage-point rise in property income tax rates for individual landlords, effective from April 2027.
Of those surveyed, 32% specifically plan to increase rents to offset the additional tax burden, while a further 38% are considering putting rents up. Just 22% stated they would absorb the extra cost.
The research also found that almost half, 47%, of landlords are considering reducing their property investments. This includes 23% weighing up selling one or more rental properties and 17% considering selling their entire portfolio. More broadly, 61% are either actively planning to leave the private rented sector or seriously considering it.
The tax changes are also affecting investment plans, with 45% of landlords deciding against buying additional properties. Nearly three-quarters of respondents expect the tax changes to affect their profits, with 37% anticipating a substantial reduction and another 37% expecting a noticeable fall.