A rumoured increase in Capital Gains Tax is the biggest fear of landlords according to new data published by the National Residential Landlords Association.
The government’s next Budget will take place in the autumn, on a date yet to be released, with speculation continuing that Chancellor Rachel Reeves may have to raise more revenue.
In an NRLA survey of 882 landlords, some 83% cited a possible rise in CGT as their main worry.
In all, 61% say they are “very concerned”, while 22% say they are ‘slightly concerned’. This comes amid unease around the cumulative impact of government policies.
The survey also showed that 53% of respondents are “very concerned” about the introduction of the Renters’ Rights Bill, with 35% “slightly concerned”.
Some 73% of respondents expressed concern about the prospect of having to meet an Energy Performance Certificate (EPC) ‘C’ equivalent for rental properties with existing tenancies by 2030.
A similar 73% feel the same way about the extension of the requirement to new tenancies from 2028 onwards.
The research, produced by Pegasus Insight on behalf of the NRLA, reflects a broader pattern of anxiety amongst investors, consistent with previous research showing declining confidence in the sector’s future.
Ben Beadle, chief executive of the NRLA, comments: ”These figures lay bare the fragility of investor confidence, with many feeling anxious about the overall direction of government policy as regards tax, rental reform and energy efficiency.
“We have a tax system which disincentivises investment, and a punitive Capital Gains Tax hike on the sale of rental properties is likely to exacerbate the situation.
“Fundamentally these findings show that the Government must rethink its approach and urgently adopt pro-growth measures to reassure investors and encourage them to do what they do best – deliver the high quality private rented accommodation that tenants need.”
This article is taken from Landlord Today