A vast majority of landlords (91%) believe that Wednesday’s Budget will be negative towards them, research by Pegasus Insight has indicated.

Concerns cited by landlords were around potential increases in taxes and costs, anti-landlord bias in Government policy, and the loss of control over property and tenant selection.

Pegasus Insight said that its findings, based on 720 online interviews with current members of the National Residential Landlords Association, revealed a “prevailing mood of pessimism” among landlords.

Respondents were most concerned about changes to capital gains tax (CGT) (85%), the introduction of rent caps (79%), the removal of Section 21 no-fault evictions (73%), mandatory landlord licensing (54%) and the requirement for properties to reach and Energy Performance Certificate (EPC) rating of ‘C’ (51%).

If the Government were to introduce significant changes to or reduce allowances on CGT, 39% of landlords said they would not invest further in the private rental sector (PRS), a figure increasing to 48% of landlords with four or more buy-to-let mortgages.

“The Chancellor would be wise to heed the warning that imposing a heavier CGT burden on landlords could result in quarter of them increasing rents immediately and a sizeable reduction in the number of properties in the PRS in the near term, leading to yet more rent rises as the supply/demand imbalance worsens over the longer term,” commented founder and director of Pegasus Insight, Mark Long.

“The PRS is vital to the housing needs of the nation, and it is crucial that this Government offers reassurance and support to the landlords who provide homes for almost 20% of our population.”

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