Research from Together and Landbay reveal mixed reactions as some landlords plan exit over rising costs
Buy-to-let landlords across the UK are reassessing their property strategies as Stamp Duty changes come into effect and regulatory challenges mount.
As of today, April 1, a higher Stamp Duty surcharge on additional properties — from 3% to 5% — is now in force, following changes announced in the Chancellor’s October budget. The policy, aimed at second homes and investment properties, has sparked concern among landlords and property professionals alike, with 15% of those surveyed by Together identifying the increase as the biggest obstacle to their investment ambitions this year.
Among the 11% of landlords planning to exit the sector in 2025, 13% cited being priced out of the market due to Stamp Duty changes. Close to a quarter of landlords surveyed by Together said the Labour government should prioritise “reducing or reforming” Stamp Duty on additional properties to prevent a decline in the supply of rental stock.
Despite these concerns, appetite for buy-to-let investment remains. Landbay’s latest landlord survey revealed that 47% of respondents have no plans to sell any properties in the next 12 months. The strongest holding intention came from landlords with mid-sized portfolios of four to 10 properties (36%), followed by those with 11 to 20 properties (26%). A large portion (75%) of these landlords own their properties through limited companies.
However, pressures are rising. Landbay found that 35% of landlords now plan to sell some properties — up from 29% in its previous survey. Over half cited taxation as the main reason, a notable jump from just over a third previously.
Concerns around evicting tenants under the forthcoming Renters’ Rights Bill were also significant, cited by 46% of those planning to sell. Mortgage rate fluctuations were less of a concern, mentioned by 39%.
Still, landlords are adjusting their strategies. According to Together, some are seeking government incentives (25%), investing in energy efficiency (25%), diversifying into different property types or locations (25%), or absorbing costs to maintain current rents (25%). A slightly smaller group (24%) plan to raise rents to cope with increasing expenses.
“As ever, I think landlords and the buy-to-let market in general have once again shown to be more resilient than many people give them credit,” said Rob Stanton (pictured), sales and distribution director at Landbay. “Our research has shown that not only are a good proportion of landlords intending to buy this year, but they are also keeping hold of the properties they have.
“While government policy and taxation may be out of our control as a lender, it’s important that we continue to use the skills and capabilities we do have to give landlords the options and the confidence to stay put in the market.”
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.
