A recent tax survey has shed light on growing uncertainty in the UK’s private rental sector, revealing that around two thirds of landlords are currently planning to sell at least one of their rental properties within the next year.
The research, carried out earlier this spring by GoSimpleTax, gathered insights from 134 self-employed landlords across the UK. It paints a picture of a market where many property owners are beginning to reconsider their long-term future in letting.
One of the most striking findings is that 43% of landlords planning to sell cited the pressure of new and changing regulations as their main motivation. Upcoming policies such as the Renters Rights Bill and Making Tax Digital are seen by many as adding complexity and cost.
A number of landlords openly admitted that remaining in the buy-to-let market is simply becoming “no longer financially viable.” With tighter rules and higher costs, profit margins that were once taken for granted are being squeezed.
Beyond regulation, there’s also an apparent crisis of confidence. According to the survey, more than one in ten landlords (14%) say they now feel “very unconfident” about the future profitability of letting properties.
A further 17% described themselves as “somewhat unconfident,” suggesting that almost a third of landlords are currently harbouring doubts about whether the rental business will remain worthwhile in the coming years.
By contrast, only 10% of those surveyed said they feel “very confident” that being a landlord will continue to generate steady income and be worth the effort and risk involved. This is a significant drop in optimism when compared to previous years.
Looking back over the last twelve months, landlords reported mixed financial results. Around 32% said their rental profits had increased, suggesting that some have managed to adapt or benefit from rising rents in parts of the UK.
However, an almost equal proportion – 34% – reported a fall in rental profits during the same period. Another third of landlords (34%) indicated that their profits had remained roughly unchanged. This mix of experiences highlights the uneven impact of wider economic conditions and local market trends.
Perhaps most telling of all, only 7% of landlords said they were planning to buy additional properties and expand their portfolios in the coming year. This low figure underlines that, for many, the current climate is about consolidation rather than growth.
Mike Parkes from GoSimpleTax commented on the survey results, noting: “Confidence in profitability is clearly under strain, and many landlords are now choosing to reduce their exposure to the market or exit entirely.”
Parkes highlighted that changes to tax and legal requirements remain a top concern for landlords. He encouraged property owners to seek guidance to help them better navigate these challenges, especially with deadlines approaching.
He explained that some updates, like the move towards Making Tax Digital, don’t need to be overwhelming if landlords start planning early. “With around ten months left before it becomes mandatory, there’s still time to get to grips with digital tools,” Parkes said.
“Taking proactive steps now can reduce stress later on, ensure compliance, and help landlords keep better track of their finances,” he added.
In the end, the survey shows that while letting property is still profitable for many, shifting regulations, rising costs, and growing uncertainty are prompting a large number of landlords to reconsider their future plans – and potentially change the shape of the UK rental market for years to come.
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