NRLA: Investor concern at potential Capital Gains Tax hike

New data published by the National Residential Landlords Association (NRLA) reveals that a rumoured potential increase in Capital Gains Tax (CGT) on the sale of rental properties is now the single biggest concern for private landlords. 

In a survey of 882 landlords, 83 per cent cited a possible rise in CGT as their main worry.

In all, 61 per cent said they are “very concerned”, while 22 per cent said they are ‘slightly concerned’. This comes amid unease around the cumulative impact of government policies. 

The survey also showed:

•    53 per cent of respondents are “very concerned” about the introduction of the Renters’ Rights Bill, with 35 per cent “slightly concerned”.
•    73 per cent of respondents expressed concern about the prospect of having to meet an Energy Performance Certificate (EPC) ‘C’ equivalent for rental properties with existing tenancies by 2030. 
•    A similar 73 per cent feel the same way about the extension of the requirement to new tenancies from 2028 onwards.

The research, produced by Pegasus Insight on behalf of the NRLA, reflects a broader pattern of anxiety amongst investors, consistent with previous research showing declining confidence in the sector’s future. 

Ben Beadle, Chief Executive of the NRLA, said: 

”These figures lay bare the fragility of investor confidence, with many feeling anxious about the overall direction of government policy as regards tax, rental reform and energy efficiency.

“We have a tax system which disincentivises investment, and a punitive Capital Gains Tax hike on the sale of rental properties is likely to exacerbate the situation.

“Fundamentally these findings show that the Government must rethink its approach and urgently adopt pro-growth measures to reassure investors and encourage them to do what they do best – deliver the high quality private rented accommodation that tenants need.” 

ENDS

Notes to Editors

• If you’d like to receive more details about this news, feel free to contact the NRLA’s Communications Team at [email protected]. 

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• The UK's largest membership organisation for private residential landlords, the National Residential Landlords Association (NRLA) supports and represents more than 100,000 members across England and Wales.