The Budget announcement today introduced some critical changes, notably an increase in Stamp Duty from 3% to 5% for second homes, which will particularly impact landlords.
While Capital Gains Tax remains unchanged for residential property, the rise in Stamp Duty might prompt some landlords to reconsider buying additional properties.
Increasingly, we see that the housing market requires more than short-term adjustments; it needs a stable, long-term vision that encourages investment and ensures tenants have affordable and secure housing options.
Without this, we risk creating a bottleneck in housing availability, where tenant demand far outstrips the supply of rental properties, driving up costs and reducing choice.
EPC TARGETS
In addition, sustainability requirements, such as the EPC grade targets, add another layer of pressure. If landlords are expected to upgrade older properties to meet EPC standards by 2030, then support measures need to be introduced now to make these upgrades feasible.
Without assistance, many landlords will face prohibitive costs, which could ultimately reduce the number of available rental properties.
Overall, the government’s approach must focus on stability and growth within the PRS.
The housing crisis cannot be solved by simply managing exits from the market; we need active measures that attract new investment, protect existing rental supply, and ensure both landlords and tenants can thrive in a fair, sustainable framework.
