Recent findings reveal fewer landlords are leaving the market post-Budget.
- Research indicates a decrease in tenanted property sales since the Budget.
- The anticipated rise in Capital Gains Tax on residential properties did not occur.
- Stamp Duty costs increased slightly, affecting second homebuyers and investors.
- Landlords’ confidence in the rental market appears to have improved.
In a recent study by Lomond, it was observed that following the Autumn Budget, there’s been a significant reduction in the number of landlords inclined to exit the market. This change is attributed to a noticeable drop in tenanted property listings for sale, suggesting a shift in landlord sentiment.
The analysis conducted by Lomond highlighted a decline of up to 3% in some areas of tenanted properties listed for sale. The initial concerns regarding potential hikes in Capital Gains Tax, which might have prompted landlords to divest, were alleviated when it was confirmed no such increase would apply to residential properties.
Despite a rise in Stamp Duty costs by 2% for second homebuyers and buy-to-let investors, the overall mood among landlords has taken a positive turn. This unexpected resilience in the market could imply that landlords still view the rental sector as a viable and stable investment avenue.
Figures indicate a marginal decline of 0.6% in tenanted properties for sale across England, with a more pronounced reduction of 3% in the East of England. Meanwhile, the South West and North East experienced declines of 2.5% and 1.9%, respectively. However, not all regions saw a drop; the East Midlands and West Midlands noted increases of 1.4% and 0.8% in listings.
Ed Phillips, CEO of Lomond, remarked on the situation, noting the exaggerated fears of a landlord exodus. He stated that many still find the rental market to be a secure investment, despite governmental challenges impacting profitability. His comments reflect a broader expectation for continued positivity in the buy-to-let landscape post-Budget.
The post-Budget landscape suggests landlords maintain confidence in rental investments despite fiscal challenges.
