Landlords defy expectations of an ‘exodus’ – claims Lomond

Two weeks after the Autumn Budget, fears of a mass exodus of landlords from the private rented sector (PRS) are claimed to have been unfounded.

‘Research’ from Lomond indicates that the number of tenanted properties listed for sale has fallen by up to 3% in some areas.

Prior to the Budget, there had been widespread concern that a potential increase in capital gains tax would drive many landlords out of the PRS.

Exodus of buy to let landlords

Despite clear evidence from Property118 readers, it is claimed the exodus is exaggerated.

Lomond’s chief executive, Ed Phillips, said: “It’s becoming fairly apparent that the exodus of buy to let landlords has been somewhat exaggerated and the vast majority continue to see the rental sector as a secure and consistent avenue of investment, despite the government’s best efforts to dent profitability.

“The good news is that having escaped a capital gains tax increase, we simply haven’t seen a rush for the door following the Autumn Budget.”

He added: “We expect the buy to let landscape will continue to remain positive now that the budget dust has settled.”

Any Drop in rental listings still impacts tenants

While second homebuyers and buy to let investors faced a 2% increase in stamp duty in the Budget, the overall impact on the rental market seems to have been minimal.

Lomond’s analysis shows a marginal decline of 0.6% in the number of tenanted properties listed for sale across England.

Some regions have seen even more significant falls.

It found that the East of England experienced a 3% drop in tenanted property listings.

The South West and North East also saw notable reductions of 2.5% and 1.9%, respectively.

Only the Midlands bucked the trend, with a slight increase in tenanted property listings in both the East and West Midlands.