Recent findings indicate a shift in landlord sentiment following the Autumn Budget, leading to fewer properties listed for sale.
- Research by Lomond reveals a significant decline in tenanted properties for sale, suggesting decreased landlord exit.
- Concerns over potential Capital Gains Tax increases have been mitigated, stabilising the rental market outlook.
- Despite increased Stamp Duty for second homes and buy-to-let investments, landlords remain optimistic.
- The trend reflects landlords’ continued faith in the rental sector as a secure investment.
In the aftermath of the Autumn Budget, a noticeable shift in landlord behaviour has occurred. Research by Lomond shows a decrease in the number of tenanted properties listed for sale. Landlords, initially fearing a potential surge in Capital Gains Tax that could drive them out of the market, have found assurance in the confirmation that such increases will not apply to residential properties.
Lomond’s analysis demonstrates that, while second homebuyers and buy-to-let investors faced a 2% hike in Stamp Duty costs, this did not significantly deter landlords. In fact, there is a recorded decrease of 0.6% in the number of tenanted properties for sale across England. Specific regions like the East of England saw more substantial reductions, with a 3% drop, while the South West and North East experienced declines of 2.5% and 1.9% respectively.
Contrarily, the East Midlands and West Midlands saw slight increases in listings, at 1.4% and 0.8%. However, the general trend suggests a stabilisation in landlord sentiment post-Budget, as they view the rental sector as a reliable and stable investment.
Ed Phillips, CEO of Lomond, supports this view by stating, “It’s becoming fairly apparent that the exodus of buy-to-let landlords has been somewhat exaggerated and the vast majority continue to see the rental sector as a secure and consistent avenue of investment, despite the government’s best efforts to dent profitability.” This statement underscores the resilience of landlord confidence in the face of policy changes.
Moreover, the absence of a capital gains tax increase has further solidified landlord optimism, preventing the anticipated rush to exit the market post-Budget. This optimism appears to be setting a positive tone for the buy-to-let landscape, with expectations of sustained interest and stability now that the uncertainties surrounding the Budget have subsided.
The optimism among landlords suggests a stable future for the rental market post-Budget.
