Pegasus Insight’s Landlord Trends Q3 2025 report highlights that a proposed 8% National Insurance charge on rental income has become the leading worry among landlords

Landlords in the buy-to-let market are expressing significant concern about potential tax changes expected in the forthcoming Budget, according to new research.

Pegasus Insight’s Landlord Trends Q3 2025 report highlights that a proposed 8% National Insurance charge on rental income has become the leading worry among landlords, with 81% describing the measure as “very concerning”.

Nearly three quarters (73%) also reported strong concern about possible amendments to Capital Gains Tax on property sales. Among those who have sold or are planning to sell property in the next year, this figure rises to 85%.

The research comes as 40% of landlords indicate plans to sell at least one property within the next 12 months, while only 7% intend to buy. This trend suggests a continued reduction in rental property supply, which has already contributed to record rent levels.

The tax burden is now seen by landlords as every bit as threatening as regulation, said Mark Long, founder and director at Pegasus Insight. 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, he said.

Long also warned of the potential consequences for both landlords and tenants if further tax measures are introduced.

Every indication from our data is that a growing number of landlords are reassessing their position, he said.

He added: 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.