A prominent business leader says there is “a sense of trepidation” amongst landlords now, because of the Budget and growing red tape – with the threat of National Insurance making things still worse.
Julie Fisher, UK chief executive of Simply Business, says: “UK landlords are facing the biggest regulatory shift in a generation as the new Renters Rights Bill and tax processes are set to come into effect. More than a third (39%) are considering leaving the rental market completely within the next year as a result of the bill as the regulation changes create uncertainty for landlords serving almost five million UK households.
“Over a fifth (21%) are uncertain about the EPC changes required and how to fulfil them, while 68% feel unprepared for the new Making Tax Digital process.
“Now they could be facing another challenge following speculation the Chancellor may extend National Insurance to rental income, a move projected to generate over £2bn. For landlords already absorbing the impact of the Renters Rights Bill, the combined effect of regulatory changes and increased tax burden will raise questions about the viability of remaining in the market.”
Fisher continues: “There’s a sense of trepidation amongst the nation’s landlords. The long-awaited Renters Rights Bill is set to drastically change the rental market in the next 12 months. But many landlords (76 per cent) fear the new regulations won’t increase standards in the market the way the government hopes.
“Insuring more than 300,000 landlords allows us to gain first-hand insight into the integral role they play in the housing market. What’s clear is their desire to continue providing quality housing while maintaining viable businesses. With the biggest changes to tenancy law in a generation almost here, alongside several other regulation changes, landlords are asking for clarity. It’s vital they’re given the time and guidance needed to continue to provide much-needed housing for almost five million households nationwide.”
Recent research by Simply Business has shown that more than a third of landlords (39%) are considering leaving the rental market completely within the next year as new regulations designed to strengthen renter protections create uncertainty for landlords serving almost five million UK households.
The 2025 Landlord Report from landlord insurance provider Simply Business, surveying over 1,000 landlords, reveals the Bill is a primary concern for a quarter (26%). Yet, despite the challenges, 39% still consider property letting worthwhile, while 26% remain uncertain.
The new bill will also see landlords facing new energy efficiency requirements, aimed at reducing tenant energy bills by an average of £240 per year. From 2030, all rental properties will be required to have an EPC rating of C, an increase of two ratings from the current standard requirement of E. The sector could need to invest up to an estimated £9 billion, with 13% of landlords expecting to spend over £10,000.
Adding complexity, Simply Business revealed over a fifth (21%) of landlords are uncertain about the EPC changes required and how to fulfil them, highlighting the need for greater clarity and guidance.
This article is taken from Landlord Today