"Many landlords feel that another policy shock, on top of CGT and the Renters’ Rights Act, could tip the balance and force them to sell."
- Mark Long - Pegasus Insight
Research from mortgage market specialist Pegasus Insight shows rising concern among landlords ahead of the November 26th Budget. Many are worried that new taxes could accelerate withdrawals from the Private Rented Sector.
The Landlord Trends Q3 2025 report highlights that an 8% National Insurance (NI) charge on rental income is now the sector’s top concern. More than eight in ten landlords (81%) describe it as ‘very concerning’.
Concerns about Capital Gains Tax (CGT) are also widespread. Nearly three-quarters of landlords (73%) are very worried about potential changes in property sales, rising to 85% among those who have sold or plan to sell property in the next year.
The report shows that 40% of landlords plan to sell at least one property in the next 12 months, while only 7% intend to buy. This suggests that supply pressures in the rental market could intensify, adding to already high rents.
Mark Long, founder and director of Pegasus Insight, commented, “The tax burden is now seen by landlords as every bit as threatening as regulation. The possibility of a new National Insurance charge on rental income is causing alarm across the sector, not just because it would erode profitability, but because it would further undermine confidence in what has already become a heavily taxed form of investment."
"Many landlords feel that another policy shock, on top of CGT and the Renters’ Rights Act, could tip the balance and force them to sell.”
Long added that the combined impact of new taxes could have serious consequences for both landlords and tenants.
“Every indication from our data is that a growing number of landlords are reassessing their position. If the November Budget adds yet another layer of taxation, we can expect more to exit the market in 2026, further reducing rental supply at a time of rising demand."
"The government needs to tread carefully, as short-term revenue gains could come at the expense of long-term housing stability.”
