But some remain optimistic about long-term investments
A majority of landlords in the UK feel let down by the recent Budget, citing concerns over higher stamp duty on second homes and investment properties, according to a new survey from buy-to-let lender Landbay.
The survey found that 72% of landlords were disappointed with the Budget. Nearly 40% said the increased stamp duty would prevent them from purchasing additional rental properties, while 30% said it would moderately impact their plans. Around 12% stated the changes would not affect them, with some dismissing the 2% increase as manageable.
Despite the disappointment, a small number of landlords expressed a more optimistic, long-term perspective on the buy-to-let market.
“This is a long-term investment, and I am not at all looking for benefit in the short term,” said one respondent, who has been investing in property for four decades. “Although the government’s actions can bring disappointment, my financial position on buy-to-let is sound, and I can take it on.”
Others criticised the government’s approach, arguing that landlords provide a vital service in the housing market. One landlord compared the tax increases to penalising doctors for their work, saying, “There is a chronic shortage of rental properties. It’s a lot like taxing a doctor extra for curing a patient.”
The survey also highlighted the regional and portfolio-specific impacts of the changes announced in the Budget. Among those with four to 10 properties, 38% said the stamp duty hike would significantly affect them. Regionally, landlords in London and the South East were the most likely to report a major impact.
However, 12.4% of respondents said they would not be affected at all, with this group spread evenly across portfolio sizes.
“Landlords are understandably concerned about the increase in stamp duty,” said Rob Stanton (pictured), sales and distribution director at Landbay. “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.
“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.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
