A survey of UK private landlords found that 70% are considering raising rents due to the government’s latest property tax changes. The changes, which include a four-percentage-point rise in property income tax rates for individual landlords from April 2027, have led many landlords to reassess their investment plans.
According to the survey results, one-third of landlords (32%) intend to raise rents directly to balance the new tax obligations, and another 38% are exploring rent hikes. Meanwhile, 22% plan to cover the added costs themselves, while 8% doubt their local market can sustain any further increases.
The findings raise concerns about the potential impact on rental supply, as almost half of landlords consider cutting their portfolios. Some 47% of landlords are considering reducing their property investments, including 23% who are weighing up the sale of one or more rental properties and 17% who are considering selling their entire portfolio.
A significant majority, 61%, of landlords are either planning to exit the private rental market or seriously evaluating that option. The tax adjustments are also reshaping investment strategies, with 45% now ruling out buying more properties and only 2% still aiming to grow their holdings.
Nearly three-quarters of respondents expect the tax changes to affect their profits, with 37% anticipating a substantial reduction and another 37% expecting a noticeable fall. Only 6% believe the changes will have no impact on profitability.
The survey revealed widespread dissatisfaction with the new tax measures, as 88% of landlords expressed unhappiness. Additionally, 83% believe the changes will worsen conditions for both landlords and tenants. LegalforLandlords’ CEO, Sim Sekhon, cautioned that tenants may face steeper rents and fewer options if landlords reduce their investments.
Sekhon advised landlords against immediate property sales, suggesting they first assess their financial situation, tax obligations, and portfolio strategy before deciding. The survey polled 651 UK landlords on November 5, 2026, reflecting their concerns over the proposed tax adjustments.
The survey was conducted by Find Out Now on behalf of LegalforLandlords. Sekhon’s warning highlights the potential long-term consequences of the tax changes, including reduced investment in the private rented sector and pressure on the supply of privately rented homes.
