Nearly two-thirds of landlords planning to raise rents say upcoming tax changes are a major factor, new polling shows — an industry association argues ministers should not ignore.

Research conducted for the association by Pegasus Insight found that 65% of landlords intending to increase rents over the next year cited the tax rise as a key driver. Only rising day-to-day operating costs, highlighted by 68%, ranked higher.

The findings come in the wake of the Chancellor’s decision to add two percentage points to income tax on rental earnings from 2027. At the time, the Office for Budget Responsibility warned the measure could feed through into higher rents, and the latest survey appears to reinforce that assessment.

Landlords also expressed deep unease about the planned abolition of Section 21 evictions on 1 May. Some 91% said they were either very or slightly concerned about the impact of court delays on regaining possession. Government figures show that possession cases now take more than seven months on average to complete — the longest wait since early 2022.

The findings come in the wake of the Chancellor’s decision to add two percentage points to income tax on rental earnings from 2027. At the time, the Office for Budget Responsibility warned the measure could feed through into higher rents, and the latest survey appears to reinforce that assessment.

Landlords also expressed deep unease about the planned abolition of Section 21 evictions on 1 May. Some 91% said they were either very or slightly concerned about the impact of court delays on regaining possession. Government figures show that possession cases now take more than seven months on average to complete — the longest wait since early 2022.

Across the wider market, 61% of landlords reported strong demand from tenants. Yet the imbalance between those exiting and those expanding their portfolios continues to grow. Almost one in four landlords (24%) said they had sold a property in the past year, while only 5% had bought — a 19-point gap that has more than doubled since early 2024.

Among those who sold, more than a quarter (27%) did so with tenants still living in the property. The landlords association has repeatedly warned that this steady outflow of landlords is shrinking the supply of rented homes and adding further pressure to rents.

A spokesman for the association said the research make the government wake up:. “Hiking taxes on rented housing will lead to higher rents. It’s not exactly clear how this approach will address the cost-of-living crisis ministers now say is the governments number one priority.”

He further elucidated that landlords were more than fed up and seriously concerned about court backlogs with the Section 21 abolition in mind: “Warm words mean nothing without a clear plan to ensure legitimate possession cases are processed and, if needed, enforced far quicker than at present.”