Investigating if the Budget has been particularly tough on property owners in the industry
The Autumn Budget of 2025, which introduced increased Stamp Duty rates for second homes and property investors, has raised concerns about the potential impact on the rental sector. However, a study conducted by Lomond, a leading Lettings and Sales Agents across the UK, suggests that the initial fears might have been overstated.
Ed Phillips, the CEO of Lomond, stated that the exodus of buy-to-let landlords has been overstated, and many continue to view the rental sector as a secure and consistent investment opportunity. This is supported by the fact that there hasn't been a significant rush of buy-to-let landlords leaving the sector following the Autumn Budget.
The research analysed current properties listed for sale with a tenant in situ and how this level of for sale stock has changed since the Autumn Budget. The study revealed that the number of tenanted properties listed for sale has fallen by up to 3% across some areas of the market. For instance, the Southwest saw a notable reduction of -2.5% in the number of properties listed for sale with a tenant in situ. Similarly, the Northeast also saw a notable reduction of -1.9%.
In contrast, four more regions have seen a reduction in tenanted for sale stock in the last two weeks, except for the Midlands, where there was a 1.4% increase in the East Midlands and a 0.8% increase in the West. The 14-day reduction in rental stock listings climbs as high as 3% in the East of England.
These findings suggest that while some landlords may be adjusting their portfolios in response to the new tax changes, the overall impact on the rental sector may not be as dramatic as initially feared.
The Autumn Budget 2025 also included an increase to capital gains tax, but this does not apply to residential property. The statement from Mr. Phillips suggests that the initial fears about the hike of capital gains tax driving landlords away from the sector may not be accurate.
Simultaneously, the introduction of the Renters’ Rights Bill in 2025 is expected to introduce more tenant protections and landlord obligations, such as moving all tenancies to periodic agreements with a minimum two-month notice period. These changes could raise landlords' operational burdens and risks, potentially motivating some to leave the rental market. However, the regional differences in exit rates from the rental sector due to these changes are not directly reported in the sources.
In summary, while the Autumn Budget 2025 has introduced changes that could potentially influence landlords' behavior, the initial fears about a mass exodus from the rental sector may be unfounded. The rental sector is expected to remain positive, with variability influenced by regional property and rental market conditions.
- Despite the concerns about the Autumn Budget 2025's influence on the rental sector, Ed Phillips, the CEO of Lomond, asserts that the exodus of buy-to-let landlords might be overstated, suggesting a consistent interest in investing in the rental business.
- The study conducted by Lomond revealed a minor decrease in the number of tenanted properties listed for sale across some regions, indicating that while some landlords are adjusting their portfolios, the overall impact on the rental sector might not be as significant as initially feared.
