92% of landlords are concerned about tax increases

A couple of weeks ago we asked landlords if you were concerned about Labour increasing taxes, particularly with rumours circulating about a rise in Capital Gains Tax in the upcoming October budget.

Over 1,000 landlords across the UK took our survey and the results are very clear.

92% expressed concerns about tax increases, with 73% saying they’re very concerned and 19% are somewhat concerned.

Landlords in London, the South East, and the South West are especially worried. The highest level of concern is in the South East, where a huge 95% of landlords are worried about potential tax increases.

Reports also indicate that landlords are selling their properties at record rates, driven by anticipated tax hikes. So, is this true?

We asked, “Are you thinking about selling your buy-to-let property/properties as a result of potential tax increases?”

53% of landlords are thinking of selling or downsizing due to potential tax changes

Almost half of landlords (42%) said they’re thinking of selling their buy-to-let properties, with a further 11% saying they’re planning to reduce their portfolio. In addition, 17% told us they might consider selling.

Only one in four (23%) of landlords said they weren’t planning to sell or downsize at all.

What the Government does regarding tax and the rental market remains to be seen. Still one thing is clear - confidence amongst landlords is slipping further and further at a time when residential rental properties are needed more than ever.