Analysts Delve into the Question: Was the Budget Unfavorable Toward Landlords
In the wake of the Autumn Budget 2021, the UK's buy-to-let landscape has experienced some changes. Ed Phillips, CEO of Lomond, a group of leading Lettings and Sales Agents across the UK, has stated that despite the government's efforts to dent profitability, the buy-to-let landscape remains positive.
According to the research conducted by Lomond, the Southwest has seen a notable reduction of -2.5% in the number of tenanted properties listed for sale. However, this reduction is not uniform across the country. The West of the UK has seen a 0.8% increase, while the East Midlands and the East of England have experienced a 1.4% and 3% increase, respectively. Interestingly, no reduction has been observed in the Midlands or the Northeast.
The reduction in rental stock listings climbs as high as 3% in the East of England. This trend, while not universal, could suggest a shift in the buy-to-let market. However, Ed Phillips expects the buy-to-let landscape to continue being positive now that the budget dust has settled.
Second homebuyers and buy-to-let investors were hit with a 2% increase in stamp duty costs when buying. This, coupled with other tax and regulatory changes, such as restrictions on mortgage interest tax relief, has increased the financial burdens on landlords, making lettings less profitable.
Despite these challenges, Ed Phillips stated that the exodus of buy-to-let landlords has been exaggerated, and most continue to view the rental sector as a secure investment. However, data shows a sharp increase in landlords selling rental properties post-2021. Between January and March 2025 alone, over 6,500 households were affected by landlords selling homes, a 19% increase from late 2024.
This acceleration in landlord exits has made tenants vulnerable to homelessness, illustrating the social impact of such sell-offs. The National Residential Landlords Association (NRLA) has characterized the situation as a "disastrous exodus" that needs policy support to encourage responsible landlords to remain in the market.
While the direct attribution solely to the Autumn Budget 2021 is complex, evidence shows that policy and fiscal changes introduced around that time contributed to worsening financial viability for landlords and triggered an accelerating exit from the UK private rental sector in the following years. This has led to a significant reduction in available rented homes and increased tenant instability.
It's important to note that no additional information about the impact of the Grey Belt 'golden rules' was provided in the article. As the situation continues to evolve, it will be interesting to see how the buy-to-let market adapts and how policy changes may impact it further.
- Ed Phillips, despite the financial burdens on landlords due to changes in stamp duty costs and mortgage interest tax relief, believes that the buy-to-let landscape will still be positive, but data suggests a sharp increase in landlords selling rental properties post-2021.
- In the changing buy-to-let landscape, investment opportunities in real-estate, particularly in regions with an increase in tenanted properties for sale like the West of the UK, could offer lucrative business ventures for investors.
