Landlords take a long-term view after the ‘disappointing’ Budget

Landlords take a long-term view after the ‘disappointing’ Budget

0:02 AM, 4th December 2024, About 14 hours ago

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Landlords across the UK have expressed disappointment with the recent Budget and are now taking a longer view of the private rented sector (PRS), one survey reveals.

Landlords say they are disappointed with the increased stamp duty on second homes and investment properties.

The research from buy to let lender Landbay reveals that 72% of landlords felt let down by the government’s decision.

Nearly 40% of landlords surveyed indicated that the increased stamp duty would deter them from buying additional rental properties.

Also, 30% stated that it would only have a minor impact, leading them to scale back their investment plans.

Just 12% of landlords believed that the change would not affect them at all.

Landlords are concerned

The lender’s sales and distribution director, Rob Stanton, said: “Landlords are understandably concerned about the increase in stamp duty.

“But it should be remembered that there is an abundance of tenants ready to rent across the country.

“Affordability is still a real challenge for residential buyers and demand continues to outstrip supply.”

He added: “The buy to let sector has survived countless crises and changing governments over the years and continues to thrive.

“But nurturing confidence among landlords is key to the health and prosperity of the UK housing market if the sector is to provide much needed accommodation.”

Landlords remain optimistic

Despite the negative sentiment, some landlords remain optimistic about the long-term prospects of the buy to let market.

One landlord said: “I feel positive because this is my attitude towards property investment over the last forty years. To me, this is a long-term investment, and I am not at all looking for benefit in the short-term.”

However, concerns were raised about the government’s apparent disregard for the essential service provided by landlords.

As one landlord put it: “There is a chronic shortage of rental properties. It’s a lot like taxing a doctor extra for curing a patient.”

Landlords with portfolios of four to 10 properties were most affected by the increased stamp duty, with 38% stating that it would have a significant impact.

Additionally, landlords based in London and the South East were disproportionately affected, accounting for 38% of the group that felt the change would have a significant impact.


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