Tax breaks would most help private rental sector – new study

Tax breaks would most help private rental sector – new study


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A survey of landlords by lettings and sales agency Carter Jonas produces a crystal clear message – tax breaks would be the best guarantee of a healthy and growing private rental sector.

The UK‑wide survey of nearly 200 landlords finds that 80% of portfolio landlords do not expect to purchase another property in the near term. The leading barriers are regulatory complexity, cited by 37%, and financial viability, cited by 20%. A further 11% say they intend to sell their entire portfolio.

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Although most respondents are keeping portfolios unchanged, 14% intend to expand. Within that group, “accidental landlords” account for 42%, making them the largest single segment among would‑be buyers. 

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When asked what would encourage further purchases, respondents most frequently cited reductions to Capital Gains Tax (63%) and Stamp Duty Land Tax (51%) and tax relief for essential maintenance (61%) as the most practical measures. 

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Conversely, 63% of landlords reported that a reduction in the proposed Minimum Energy Efficiency Standards (MEES) requirement would have no impact on their purchase decisions. 

There is broad support for measures that raise standards and reduce friction, provided the rules are proportionate, clear and financially viable. 

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In the context of the Renters Rights Act, a Private Sector Ombudsman is viewed positively by the majority of respondents, indicating appetite for a more efficient framework that protects both landlords and tenants. Views on other provisions are mixed, with proposals such as the abolition of Section 21 and the right for tenants to request a pet attracting greater scepticism.  

Overall, landlords are cautious on regulatory changes but show openness to new measures that provide clear standards and keep investment viable.

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Among those planning to buy, “accidental landlords” are particularly prominent, accounting for 42%. The agency says that many may not have set out to be long‑term investors but now see value in adding to their portfolios. With tenant demand having surged post-pandemic and most households renting for longer, demand for homes remains robust, creating a pathway for landlords who sense an opportunity in the market. 

Lisa Simon, head of residential at Carter Jonas, comments: “Landlords are cautious, but our findings show where progress is possible. Clear rules, proportionate standards and practical reliefs can unlock investment, particularly among accidental landlords who are choosing to stay the course.

“Our survey records a cautious stance, yet the direction of travel is constructive. Since the Budget, clarity has improved, although outcomes depend on how policy is applied in practice. With rental demand strong and a cohort of “accidental landlords” planning to expand, our outlook is cautiously optimistic, provided measures remain proportionate and financially viable.”

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