Hamptons published analysis this week marking ten years since the additional stamp duty surcharge was introduced on 1 April 2016. Combined with the increase to 5% in October 2024, they estimate 25.4% fewer homes are available to rent in February 2026 compared with February 2016. Worth reading alongside the current rate data. With two-year fixes now at 5.9% the economics of leveraged BTL look increasingly difficult for anyone not already in with low-cost fixed debt.
Been saying this for years and nobody in government listens.. the surcharge was supposed to “level the playing field” for first time buyers but all it’s done is shrink the rental stock while demand keeps rising. Brilliant policy outcome there.
Bought my first BTL in 2003 for £62k with no surcharge, no section 24 tax grab, no EPC minimum requirements, no licensing fees. Bought my last one in 2018 and paid an extra £4,800 in surcharge on a £96k flat in Gateshead. That £4,800 went straight to the Treasury and did precisely nothing for the local housing supply.
Now layer on 5.9% mortgage rates and the Renters Rights Act and honestly I’m surprised the figure is only 25%. Most landlords I know personally (small portfolios, 1-5 properties) are either selling up or sitting tight and praying. Nobody is buying.
Cheers!