Landlords have accused Labour of being ‘anti investment’ as a new survey reveals over half are worried about the costs of EPC upgrades, the Renters’ Rights Bill and mooted increases in Capital Gains Tax.

The National Residential Landlords Association (NRLA) which has published the survey results following a poll by Pegasus Insight of nearly 900 landlords, says the results suggest many investors believe the Government wants to ‘disincentivise investment’ in the private rented sector.

The poll highlights how 80% of landlords are worried about ‘rumoured’ rises in CGT on second homes and BTL properties as the Chancellor Rachel Reeves battles to balance the books at HM Treasury, while half said they were concerned over the introduction of the Renters’ Rights Bill and three quarters fret about the costs of EPC upgrades will cost some landlords up to £15,000 to complete.

CGT hike

The rumours of a CGT increase for landlords follow a US interview with Reeves late last year in which she refused to rule out a rise, saying she would like to see property investor CGT and personal CGT rates aligned.

Landlords who make a gain after selling a rental property currently pay 18% CGT as a basic-rate taxpayer, or 24% if they pay a higher rate of tax. Aligning CGT to personal income tax levels would raise this to 20% and 40% respectively.

Also, in March it was claimed that landlords could face a hike in CGT if the economy dips before the Autumn Budget, the Institute of Fiscal Studies (IFS) said.

Consequently, in all, 61 per cent of landlords quizzed by the NRLA said they were ‘very concerned’ about the overall direction of travel from Labour.

The research, produced by Pegasus Insight on behalf of the NRLA, reflects a broader pattern of anxiety amongst investors, consistent with previous research showing declining confidence in the sector’s future, the NRLA says.

Anxious

”These figures lay bare the fragility of investor confidence, with many feeling anxious about the overall direction of government policy as regards tax, rental reform and energy efficiency,” says Ben Beadle (main image), Chief Executive of the NRLA (pictured).

“We have a tax system which disincentivises investment, and a punitive Capital Gains Tax hike on the sale of rental properties is likely to exacerbate the situation.

“Fundamentally these findings show that the Government must rethink its approach and urgently adopt pro-growth measures to reassure investors and encourage them to do what they do best – deliver the high quality private rented accommodation that tenants need.”