Two thirds of landlords increasing rents say the Chancellor’s planned income tax rise is a key factor, according to new survey data that reinforces warnings of higher costs for tenants.
A poll of National Residential Landlords Association members conducted by research firm Pegasus Insight found that 65 percent of landlords who are raising rents cite Rachel Reeves’ 2 percent income tax increase on rental income, due to take effect from 2027, as an influence on their decision. Some 68 percent pointed to the general increased cost of running a property.
Court backlogs top landlord concerns
With Section 21 being abolished from 1 May, landlords are increasingly worried about the court system’s ability to handle possession cases. According to the survey, 91 percent of respondents were either very concerned or slightly concerned about court wait times for repossessing properties.
The government admits it now takes an average of over seven months for the courts to process and enforce possession cases – the longest wait since the start of 2022.
More landlords selling than buying
The data also reveals a continued exodus from the sector. Some 24 percent of landlords said they had sold property over the previous 12 months, compared with just 5 percent who had expanded their portfolio. Of those who sold, 27 percent did so with existing tenants still in place.
Tenant demand remains strong according to 61 percent of landlords, suggesting rental supply continues to tighten even as more properties leave the private rented sector.
Ben Beadle, chief executive of the NRLA, said: “This research should be a wake-up call to the government. Hiking taxes on rented housing will lead to higher rents.”
The findings align with Office for Budget Responsibility analysis, which concluded that the income tax increase would feed through to tenant costs.
Editor’s view
The data confirms what the sector has been warning for months: rising landlord costs get passed to tenants. With nearly a quarter of landlords selling up and court delays at their worst in years, the supply crisis looks set to deepen before it improves.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 9 February 2026
Sources: NRLA, Pegasus Insight, Office for Budget Responsibility
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