Landlords defy expectations of an ‘exodus’

Landlords defy expectations of an ‘exodus’

0:05 AM, 15th November 2024, About 2 hours ago

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Two weeks after the Autumn Budget, fears of a mass exodus of landlords from the private rented sector (PRS) market appear to have been unfounded.

However, research from Lomond has revealed that the number of tenanted properties listed for sale has fallen by up to 3% in some areas.

Prior to the Budget, there had been widespread concern that a potential increase in capital gains tax would drive many landlords out of the PRS.

But when the government confirmed that this tax hike would not apply to residential property, these fears were laid to rest.

Exodus of buy to let landlords

Lomond’s chief executive, Ed Phillips, said: “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.

“The good news is that having escaped a capital gains tax increase, we simply haven’t seen a rush for the door following the Autumn Budget.”

He added: “We expect the buy to let landscape will continue to remain positive now that the budget dust has settled.”

Buy to let investors

While second homebuyers and buy to let investors faced a 2% increase in stamp duty in the Budget, the overall impact on the rental market seems to have been minimal.

Lomond’s analysis shows a marginal decline of 0.6% in the number of tenanted properties listed for sale across England.

Some regions have seen even more significant falls.

It found that the East of England experienced a 3% drop in tenanted property listings.

The South West and North East also saw notable reductions of 2.5% and 1.9%, respectively.

Only the Midlands bucked the trend, with a slight increase in tenanted property listings in both the East and West Midlands.


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