Buy-to-let landlords are expressing deep anxiety ahead of the 26 November Budget, fearing that further tax increases could accelerate an already significant withdrawal from the private rented sector.
New research from mortgage market specialist Pegasus Insight shows that concern about a proposed 8% National Insurance charge on rental income has become the defining issue for landlords this autumn. In its latest Landlord Trends Q3 2025 report, more than eight in ten respondents said the proposal was “very concerning”, placing it above all other policy worries.
The study also found that almost three quarters were deeply worried about potential changes to capital gains tax on property sales, rising to 85% among those who have either sold or intend to sell a property within the next year.
These concerns come against a backdrop of shifting landlord behaviour. Forty per cent of respondents said they plan to sell at least one property in the next 12 months, while only 7% expect to buy. The imbalance suggests a continuation of the supply pressures that have driven rents to record levels across much of the country.
‘ALARM ACROSS THE SECTOR’
Mark Long, founder and director of Pegasus Insight, said landlords now view taxation as being as much of a threat as regulation.
He said: “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 warned that the cumulative effect of additional taxes could have wider repercussions for tenants as well as landlords.
He said: “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 — short-term revenue gains could come at the expense of long-term housing stability.”
The findings are based on 872 online interviews with members of the National Residential Landlords Association carried out between 21 September and 9 October.
Pegasus Insight provides qualitative and quantitative research, behavioural science and data-led consultancy services to clients across the property and financial sectors.
