Pegasus Insight polling finds 73 percent of landlords intend to raise rents after the Budget, with 52 percent planning property sales in the next 12 months. The snap poll of 168 National Residential Landlords Association members links both responses directly to higher property income tax rates due from April 2027.
The breakdown points to broad-based rises rather than isolated cases. Nearly four in ten respondents (38 percent) said they would charge 5 percent to 10 percent or market rents, whichever is higher. A further 11 percent cited more than 10 percent or market rents, while 24 percent selected less than 5 percent or market levels.
Budget timing has turned a tax change set for April 2027 into an immediate pricing call. With lenders repricing around a 4 percent Bank Rate and energy efficiency costs still to come, many respondents said they could not absorb another cut to net income without passing part of it on or quitting stock.
Rent rise plans cover most of the sample
Only a minority expected to hold rents flat. The poll suggests higher-rate and additional-rate payers feel the squeeze first, since the Budget adds two percentage points to each property income tax band from 2027/28. NRLA members are already being urged to lobby MPs over the rental tax raid, which the association says will push costs into rents.
Mark Long, director of Pegasus Insight, said the industry had repeatedly warned that taxing landlords harder risks raising costs for tenants. “Announcing another two-percentage-point rise before the previous increase has even taken effect suggests those warnings have gone unheard,” he said.
Sales and maintenance pullback add supply risk
More than half of respondents plan to sell. Within that group, 38 percent plan to sell some properties and 14 percent plan to sell their entire portfolio. Only 2 percent are looking to expand, while 26 percent expect no change and 20 percent said it was too early to say.
Spending intentions point the same way. Although 55 percent said spending would not change, nearly three in ten (29 percent) expect to cut maintenance or improvement outlay, including 13 percent who expect to cut it significantly. That raises questions around energy efficiency upgrades and Decent Homes preparation. Pegasus Insight confidence data already showed profits holding but sentiment falling to 23 percent, and the latest poll suggests sentiment has hardened into action.
This follows Landlord Knowledge’s report on the NRLA lobbying campaign, which found London landlords face an extra 123 pounds per property per month under the new bands. The latest Pegasus figures indicate that pressure is now feeding into rent and disposal decisions rather than remaining a warning.
Long said landlord comments described the move as a stealth tax on tenants and questioned how investment in homes could continue. “These are immediate reactions, and intentions to raise rents or sell will not all become reality. But the strength of the response should give the Government serious pause for thought,” he said. NRLA polling detail is published through the association.
What this means for landlords
- If you plan a rent rise: evidence the figure against local market rents now, since tribunals are cutting unsupported increases back to achieved levels.
- If you plan to sell: test tenant-in-situ versus vacant sale routes and check capital gains timing before April 2027, when the new bands bite.
- If budgets are tight: protect compliance and safety spending first, then phase efficiency work to avoid a last-minute rush.
- Watch for: MP responses to the NRLA campaign and any Treasury clarification on transitional rules in the new year.
- Bottom line: tenants face higher rents and fewer homes if even half of these intentions convert into moves.
Editor’s view
Ministers cannot keep asking landlords to fund better standards while cutting the income that pays for them. If rent rises on this scale land together, the Budget will be felt in every renewal letter. The Treasury still has time to phase the change, but the window is closing.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 11 November 2026
Sources: Pegasus Insight, NRLA
Related reading: NRLA urges landlords to lobby MPs over rental tax raid
