The private rented sector (PRS) needs stability to encourage growth and investment, a recent report by Pegasus Insight has revealed.
The workshop findings revealed that the PRS is changing due to tax changes and legislation.
In 2010, 78% of landlords had one property but by 2024 that has dropped to 45%.
Currently, 50% of the property is owned by 20% of landlords.
The Renters’ Rights Bill is worrying landlords; 81% believe it will have a negative impact on the PRS, with the removal of no-fault evictions being a top concern.
Another concern is Capital Gains Tax (CGT) and 85% of landlords are worried about this.
81% of landlords say they will be more selective, 62% will put rents up, and 23% will cut costs by spending less on maintenance.
Bethan Cooke, director of Pegasus Insight, said: “We were delighted to welcome such a large group of buy-to-let specialists to our first workshop, to analyse our research and discuss the future of the PRS.
“The findings of this research can help lenders plan ahead as they look to cater for the changing needs of buy-to-let investors in a pressured and professionalising market.
“But mortgage lenders can only do so much. These findings present a stark warning to government.”
Cooke added: “It must find ways to nurture the PRS and encourage more investment in the sector if we are to avoid severely deepening the UK’s housing crisis.
“As a start point, the government should promise policy stability in order to boost landlord confidence.
“It seems too late to turn back the clock on the Renters’ Rights Bill, but the government should commit to no more legislative changes and no further tax increases for landlords.”
She said: “Research we carried out before the last Budget revealed that 39% of landlords would stop investing and 19% exit the market if CGT on the sale of second properties were increased.
“Rachel Reeves made the right decision in not hiking CGT in October 2024. She must not be tempted to squeeze landlords further in future.”
