Following the Autumn Budget, a sense of calm has emerged among landlords.
- Research by Lomond reveals a reduction in tenanted property listings two weeks after the Budget.
- Concerns about Capital Gains Tax increases prompted fears but did not materialise for residential properties.
- Stamp Duty costs saw a 2% rise for some, but landlord sentiment remains positive.
- The data indicates a modest decline in landlords exiting the market, with regional variations observed.
The aftermath of the Autumn Budget has seen a noticeable decrease in the number of tenanted properties listed for sale, according to recent research by Lomond. Two weeks following the announcement, it has become apparent that speculation regarding a mass landlord exodus was largely unfounded.
Initial fears had arisen due to potential changes in Capital Gains Tax (CGT) that might have affected landlords harshly. However, these worries were alleviated as the increase did not apply to residential properties. This crucial development brought relief to many in the sector, who had been contemplating their future strategies.
While there was a legitimate concern over the 2% increase in Stamp Duty for second homebuyers and buy-to-let investors, the overall sentiment among landlords remains optimistic. The changes did not appear to significantly deter investment in the rental market, underscoring its perceived stability.
The data highlights a subtle decline of 0.6% in the number of tenanted properties available for sale across England. This trend was more pronounced in certain regions; the East of England experienced a 3% drop, the South West saw a decrease of 2.5%, and the North East recorded a 1.9% fall. Not all regions followed the trend, with the East Midlands noting a slight increase of 1.4% and the West Midlands witnessing a rise of 0.8%.
Ed Phillips, CEO of Lomond, commented on the situation, noting that “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.” His statement reflects the resilience of landlords in adapting to the new fiscal landscape.
The reassurance gained from the Budget, particularly concerning CGT, coupled with the inherent appeal of the rental market, seems to have steadied the nerves of landlords across the country. This stable outlook is expected to persist as the consequences of the Budget become clearer.
The Autumn Budget appears to have calmed landlord exit fears, with stable investment sentiment likely to continue.
