Landlords think the change to the stamp duty threshold next year will encourage tenants to stay longer and could even boost rental demand, latest research from buy-to-let lender Landbay suggests.
Its 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?”
Almost half of all landlords (49%) replied that they thought more tenants would be staying put or renting for longer. And over a third (35%) said the move might increase demand.
The threshold change announcement has provided landlords with a silver lining in what was an otherwise disappointing Budget for them.
MOST OPTIMISTIC
Those landlords with medium-sized portfolios were the most optimistic about the change. Just under a third (30%) of those who thought it would increase demand were landlords with between four and 10 properties while a quarter (24%) had 11 properties. Four out of 10 (41%) of those who thought the change would increase demand were landlords in London and the South East.
THRESHOLD CHANGE
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.”
LANDLORD NEEDS
And he adds: “As a buy-to-let lender we remain committed to innovating to meet the needs of landlords. We are ready, willing and able to support them.”
Earlier this month Landbay also launched a new limited edition range of remortgage products with eight new remortgage products. This includes standard 5-year fixed rate products available at up to 70% and 75% LTV with rates starting at 4.69%.
