Longer Tenancies Likely Thanks To Stamp Duty Change
Landlords think the stamp duty change coming this spring will encourage tenants to stay longer, a new survey has found.
Buy-to-let lender Landbay’s most recent landlord survey 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?”
Forty nine per cent of landlords replied that they thought more tenants would be staying put or renting for longer. Thirty five per cent said the move might increase demand.
According to Landbay, the threshold change announcement has provided landlords with a silver lining in what was an otherwise disappointing Budget for them.
Those landlords with medium-sized portfolios were the most optimistic about the stamp duty change. Thirty per cent of those who thought it would increase demand were landlords with between four and 10 properties while 24% had 11 properties.
Forty one per cent of those who thought the change would increase demand were landlords in London and the South East.
Rob Stanton, sales and distribution director at Landbay, says: “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.”
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