Rental demand to increase with stamp duty threshold change

Published:

Landlords believe the change to the stamp duty threshold in 2025 will encourage tenants to stay longer and could even boost rental demand, according to a survey from Landbay.

The buy-to-let lender asked landlords: “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?”

49% of landlords thought more tenants would be staying put or renting for longer. 35% said the move might increase demand.

SPREAD OF OPINION

Those landlords with medium-sized portfolios were the most optimistic about the change. 30% of those who thought it would increase demand were landlords with between four and 10 properties while 24% had 11 properties. 41% of those who thought the change would increase demand were landlords in London and the South East.

Rob-Stanton-Landbay
Rob Stanton, Landbay

Rob Stanton, sales and distribution director at Landbay, 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, with many tenants ready and willing to rent across the country.

“We are finding that, while some disaffected landlords are sitting on their hands, others are exploring investment opportunities across the country. We would not be surprised if the threshold change gives the market a further boost.

“As a buy-to-let lender we remain committed to innovating to meet the needs of landlords. We are ready, willing and able to support them.”

Earlier this month Landbay launched a new limited edition range of remortgage products with eight new remortgage products. This includes standard five-year fixed rate products available at up to 70% and 75% LTV with rates starting at 4.69%.

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