Research from Pegasus Insight shows deep anxiety among buy-to-let landlords ahead of next Wednesday’s Budget, with fears that new taxes could accelerate exits from the Private Rented Sector.

Key findings from the Q3 2025 Landlord Trends report:

• 81% of landlords are very concerned about the proposed 8% National Insurance charge on rental income
• 73% are very concerned about potential changes to Capital Gains Tax, rising to 85% among those planning to sell property in the next year
• 40% of landlords plan to sell at least one property in the next 12 months, while only 7% plan to buy, signaling further rental supply pressures

Sector insights:

• HMOs remain resilient, with strong tenant demand and tailored mortgage products supporting professional landlords
• Local regulations—Article 4 Directions, licensing schemes, EPC requirements—continue to impact returns
• Speculation around stamp duty replacement, council tax revaluations, and annual property levies is causing uncertainty, particularly for smaller landlords and high-value properties

Advice from industry experts:

• Succession planning and portfolio restructuring may become increasingly important
• Professional landlords with well-structured HMOs are better positioned to weather policy changes
• Stable interest rates and strong tenant demand continue to support long-term investment viability

Mark Long of Pegasus Insight warns: “Short-term revenue gains from new taxes could come at the expense of long-term housing stability, as more landlords consider exiting the market.”