Over four in five (81%) landlords are "very concerned" about a possible National Insurance levy on rental income that could be introduced in the upcoming Autumn Budget, Pegasus Insight has found.

The mortgage market specialist's Landlord Trends Q3 2025 report revealed that the proposed 8% National Insurance charge on rental income has become the number one concern among landlords, in what it has descried as a time of "deep anxiety" in the buy-to-let sector.

Almost three quarters (73%) said they are also very concerned about potential changes to Capital Gains Tax on property sales, increasing to 85% among landlords who have sold or intend to sell property in the coming year.

Pegasus Insight’s findings come after 40% of landlords said they plan to sell at least one property in the next 12 months, compared to 7% who plan to buy, signalling the continuation of a supply squeeze that has driven rents to record highs.

Founder and director at Pegasus Insight, Mark Long, said that landlords now see the potential upcoming tax burden just as threatening as regulation.

He concluded: "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 Capital Gains Tax and the Renters’ Rights Act, could tip the balance and force them to sell.

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

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