What Could Happen If You Hold On: Tax Rises, Rent Reform, and a Flooded Market
An article by Rob Hill, Founder of estate agency Greater London Properties (GLP) : "There are several significant headwinds forming that could have a profound impact on the property market in the coming months...
With the Autumn Statement looming, there is growing speculation that the government may announce sharp increases to Capital Gains Tax (CGT), alongside the imminent introduction of the long-debated Renters Rights Bill.
Both these measures, if implemented as widely anticipated, could dramatically shift the landscape for property owners, landlords, and investors.
Capital Gains Tax – A Likely Target
The government has already pledged billions towards public spending commitments that are yet to be fully costed. In the search for additional revenue, landlords and property investors remain an easy and politically safe target for higher taxation.
While no official announcement has yet been made, industry chatter and early signals suggest that Capital Gains Tax could rise considerably in the Autumn Statement, with implementation likely from April 2026. For many landlords who have owned properties for longer periods — particularly in high-growth areas around the capital for instance central London aswell as places like Hampstead & Dulwich — this poses a serious financial dilemma.
Some will likely rush to market, aiming to sell before any new CGT rates are applied. This sudden influx of motivated sellers, keen to beat the tax deadline, will create a surge in supply — and with it, substantial downward pressure on house prices.
For owners already considering a sale, this could quickly become a "first mover advantage" scenario: act now, accept the loss, and sell into a market that hasn’t yet fully priced in the tax rise — or risk waiting and competing with a flood of price-reduced stock in early 2026.
The Renters Reform Bill – Another Blow For Landlords
At the same time, the long-anticipated Renters Rights Bill is set to bring sweeping changes to the rental market. The abolition of Section 21 "no-fault" evictions, increased obligations on landlords, and enhanced tenant protections will fundamentally shift the balance of power in landlord-tenant relationships. While these reforms aim to protect tenants, they add a layer of complexity, cost, and risk for landlords — many of whom may now question whether property remains a worthwhile investment at all.
Some landlords, especially those already feeling squeezed by rising mortgage rates, tighter regulations, and now the threat of higher CGT, may decide to exit altogether. Again, this could increase supply and dampen prices further.
The One Positive – A Booming Rental Market
Despite these challenges, one clear bright spot remains: tenant demand has never been stronger. Rental supply remains constrained and high-quality rental stock is being snapped up almost instantly. Should vendors find themselves unwilling or unable to accept the losses that a declining sales market may demand, the option of letting remains viable — but this should not be viewed as a short-term stopgap.
With the combined effects of tax changes and new regulation, entering or remaining in the rental sector should be considered a 5-year+ commitment. Investors need to factor in potential regulatory hurdles, legislative changes, and taxation shifts that may come in the interim. A short-term rental strategy is unlikely to be a safe play in the coming 12-24 months.
In Summary
In my view, there are realistically two options for landlords or vendors sitting on properties that are currently showing a paper loss:
Move quickly to sell — ahead of the Autumn Statement and the wider market shift that could see significantly lower prices driven by tax-motivated sales from other landlords. If we're looking at changes coming in beginning of next year then after the summer slump - end of September/October time would be a brilliant time to get your property on the market, and looking at it's very best in order to stand out from the crowd.
Commit to long-term letting — capitalise on strong tenant demand, but be prepared for regulatory changes and the need for longer-term asset management.
Both paths carry risk and reward.
If you’d like to hear more about how we work – and why sellers trust us to deliver – call me - Rob Hill on 0207113 1066 or click here to book a free valuation with myself or a member of the GLP Team.
Warm regards,
Rob Hill
Founder of GLP & the Support Our Schools Initiative