Landlords see the change to the stamp duty thresholds due to take effect in April as a “cause for optimism”, according to a survey of the buy-to-let (BTL) sector.
Almost half of landlords surveyed by Landbay said they thought more tenants would remain in the private rented sector (PRS) or rent for longer because the stamp duty thresholds were reverting to their pre-2022 levels in just over three months.
Meanwhile, 35% said the changes to thresholds might increase demand.
Former Prime Minister Liz Truss doubled the minimum stamp duty threshold from £125,000 to £250,000 during her mini Budget in 2022. The price at which first-time buyers must start paying stamp duty was also raised from £300,000 to £425,000.
From 1 April, the temporary increases will revert to their original levels.
According to Landbay’s survey, landlords with medium-sized portfolios were the most optimistic about the change, while 41% of those who thought the change would increase demand were landlords in London and the South East.
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Rob Stanton (pictured), 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.”
Rents rose by 9.1% in the 12 months to November, up from 8.7% in October, according to the Office for National Statistics (ONS).