Landlords are expressing mounting concern that new tax measures expected in the 26th November Budget could worsen the already severe shortage of rental homes, according to new research from Pegasus Insight.
The latest Landlord Trends Q3 2025 report revealed that 81% of landlords are “very concerned” about the proposed 8% National Insurance levy on rental income, now the sector’s top worry.
Nearly three quarters (73%) also reported being very concerned about the possibility of further Capital Gains Tax (CGT) increases, rising to 85% among those who have recently sold or plan to sell a property within the next year.
The findings come as 40% of landlords said they intend to sell at least one property in the next 12 months, while only 7% expect to purchase.
Pegasus Insight said this imbalance points to a continued tightening of rental supply, which has already contributed to record-high rents in many parts of the UK.
Mark Long, founder and director of Pegasus Insight, 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 additional tax changes could accelerate landlord exits and further strain the rental market.
He added: “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.”
