Many landlords predict that upcoming Stamp Duty changes could boost rental demand in 2025. What will this mean for the buy to let sector next year?
A new survey conducted by specialist buy to let lender, Landbay, asked landlords how the Government’s decision not to extend the temporary Stamp Duty thresholds in the 2024 Autumn Statement might affect the rental market.
The results show that this decision has gone down positively amongst landlords. Almost half of those surveyed (49%) thought this threshold change would see many tenants stay put and rent for longer. Furthermore, 35% felt confident that rental demand will continue to increase due to the Stamp Duty threshold changes.
Industry comment
The Sales and Distribution Director at Landbay, Rob Stanton, commented, “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.”
Tenant demand in 2025
As Stanton comments, the supply and demand disparity in the rental market has been the leading contributor to rising rents over the last few years. This has helped landlords and property investors when needed most, but fluctuating mortgage rates and increased legislation have presented significant challenges for the sector.
As we enter 2025, rates are expected to continue on their downward trajectory, but the upcoming implementation of the Renters’ Rights Bill will no doubt be on landlords’ minds. With tenant demand expected to continue growing, higher rental yields will help soften the blow of tackling this new legislation.
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