Rightmove demands government action on landlord incentives and stamp duty reform

Rightmove is calling for a range of policy measures to be introduced ahead of the Spring Budget.

The website says more green target incentives to help landlords improve their properties is a key issue that needs to be addressed.

Rightmove is also urging the government to support people moving home by reforming stamp duty.

More widely accessible grants

Following the government backtracking on energy efficiency targets last year, Rightmove data shows a decline in the number of landlords planning to make energy efficiency upgrades to properties with lower EPC ratings.

In 2022, more than a third (36%) of landlords said they planned to make improvements to properties rated below a C. In late 2023, after the government had announced they were scrapping targets, this dropped to 26%.

Rightmove is urging the government to take action in incentivizing landlords to prioritize property improvements over selling. They propose more widely accessible grants or tax savings should be considered to help make rental homes greener for tenants.

Lack of clarity around future EPC regulations

Christian Balshen, Rightmove’s lettings expert said: “Due to the lack of available and accessible funding, many landlords aren’t in a financial position to be able to carry out major energy efficiency upgrades to their properties.

“A further lack of clarity around potential future EPC regulations means we’ve seen a drop in the number of landlords who are actively deciding to make their properties greener.

“Ultimately this will be to the detriment of tenants who are increasingly wanting to live in energy efficient properties, and so we’d encourage any financial incentives that can be provided to landlords to improve the energy efficiency of the UK private rented sector.”

Help first-time-buyers to get on the property ladder

Data from Rightmove reveals in London, only 4% of homes for sale are exempt from the current stamp duty charges for all buyers.

Less than a third (28%) of London properties are currently exempt from stamp duty for first-time buyers, compared to nine in ten (91%) in the North East.

The website is calling for a more localised approach to stamp duty charges in line with regional property prices, which could support more first-time buyers in getting a foot on the ladder and potentially encourage more movement up and down the ladder.

Tim Bannister, Rightmove’s property expert said: “Stamp duty is a big barrier to moving, with some who would potentially consider a move likely put off by the hefty stamp duty tax in addition to other moving costs.

“At the very least the government should be thinking about making the current changes to first-time buyer stamp duty charges permanent, with the higher thresholds introduced in 2022 due to expire next year.”

He adds: “However, we think there is an opportunity to go a step further. With such regional variations in property prices, increasing stamp duty thresholds in line with these regional variations would seem a logical first step for stamp duty reform.

“Whilst longer-term supply measures are also needed, this could be one way to help first-time buyers trying to get onto the ladder in more expensive parts of England.”

Share This Article