Capital Gains Tax hike now landlords' biggest fear

A rumoured increase in Capital Gains Tax (CGT) on the sale of rental properties is now the single biggest concern for private landlords, according to new data out this week.

A massive 83% cited a possible rise in CGT as their main worry in the association's most recent landlord survey, with 61% said they are “very concerned”.

The news comes amid unease around the cumulative impact of government policies across the board.

The survey also showed:

•    53 per cent of landlords are “very concerned” about the introduction of the Renters’ Rights Bill
•    73 per cent expressed concern about the prospect of having to meet an Energy Performance Certificate (EPC) ‘C’ equivalent for rental properties with existing tenancies by 2030. 
•    The same proportion 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. 

NRLA chief executive Ben Beadle 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.” 

More information

To read Ben's blog about falling levels of investment in the PRS click here.

To read more about the Renters' Rights Bill and the NRLA campaign click here.