Stamp duty threshold change could boost PRS demand

Stamp duty threshold change could boost PRS demand

0:01 AM, 23rd December 2024, About 5 hours ago

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Nearly half of landlords believe that the upcoming changes to the stamp duty threshold could boost the private rented sector, a survey reveals.

The findings from buy to let lender Landbay show that 49% of landlords surveyed anticipate that tenants will be more likely to stay put or rent for longer.

Also, 35% of landlords believe that the change could lead to increased rental demand when thresholds return to pre-pandemic levels.

The optimism among landlords is particularly strong among those with medium-sized portfolios and those operating in London and the South East.

Stamp Duty Land Tax (SDLT) thresholds

Starting from April 1, 2025, the Stamp Duty Land Tax (SDLT) thresholds will change with the nil rate for general property purchases reverting from £250,000 to £125,000.

For first-time buyers, the nil rate threshold will fall from £425,000 to £300,000.

Landbay’s sales and distribution director, Rob Stanton, said: “The threshold change has given landlords cause for optimism in what is an uncertain time.

“But it is worth remembering that the market is incredibly resilient as it is.

“Demand for decent rental properties already continues to outstrip supply.”

He added: “We are finding that, while some disaffected landlords are sitting on their hands, others are exploring investment opportunities.

“We would not be surprised if the threshold change gives the market a further boost.”

‘Provided landlords with a silver lining’

Landlords were asked: “The Government will not extend the temporary stamp duty threshold for buyers past the end of March next year. How do you think this might affect the rental market?”

The lender says that the threshold change announcement has provided landlords with a silver lining in what was an otherwise disappointing Budget for them.

Landbay says that 30% of those who thought it would increase demand were landlords with between four and 10 properties, while 24% had 11 properties.

And 41% of those who thought the change would increase demand were landlords in London and the South East.


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