Budget analysis: Assessing the impact on property owners
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In the aftermath of the Autumn Budget 2025, concerns about a potential exodus of buy-to-let landlords from the rental sector have proven to be premature, according to a recent study by Lomond, a leading group of Lettings and Sales Agents across the UK.
The analysis focused on properties listed for sale with a tenant in situ and how this level of for-sale stock has changed since the Budget. The results show a marginal decline of -0.6% in the number of properties listed across England, with regional variations.
The Southwest experienced a notable reduction of -2.5%, while the East of England saw a climb in rental stock listings of up to 3%. Surprisingly, the Northeast also saw a reduction of -1.9%, bucking the trend of some more prosperous regions.
Contrary to initial fears, there does not seem to be a significant exodus of buy-to-let landlords from the rental sector. Instead, the data suggests a more nuanced picture, with the impact of the Autumn Budget's tax rises and fiscal changes varying regionally.
Key points relevant to landlords include the freezes on income tax thresholds, rises in capital gains tax (CGT), pensions, and inheritance tax, which place additional financial burdens on landlords and property investors. The Renters’ Rights Bill, expected to receive Royal Assent in Autumn 2025 and implement early in 2026, will overhaul tenancy laws, introducing rent regulation, restricting eviction rights, and placing enhanced obligations on landlords.
These changes, combined with increased tax liabilities, may diminish returns for individual landlords, especially in high-demand or lower-margin rental markets, encouraging exit decisions or property sales. The shift is expected to accelerate market segmentation, with professional or institutional landlords better equipped to absorb new risks and compliance costs, while smaller individual landlords may withdraw, impacting regional rental housing supply variably across England.
However, the two weeks following the Budget saw an increase in properties listed for sale with a tenant in situ in the East Midlands (1.4%) and the West of England (0.8%). Ed Phillips, CEO of Lomond, stated that the rental sector continues to be seen as a secure and consistent avenue of investment.
Despite the government's efforts to dent profitability in the buy-to-let sector, there hasn't been a rush for the door following the Autumn Budget. The buy-to-let landscape is expected to remain positive, with landlords adapting to the new fiscal landscape and finding ways to maintain their investments.
It is important to note that the analysis does not provide detailed regional analysis or empirical data to quantify the impact further. For a more comprehensive understanding, future studies and region-specific studies will be necessary. The impact of the Autumn Budget 2025 on the rental market is an evolving story, and the coming months will undoubtedly shed more light on the situation.
In the face of tax rises and regulatory changes in the Autumn Budget 2025, some buy-to-let landlords might be considering selling their real-estate investments as a response to increased financial burdens, potentially impacting the local rental market. However, despite these challenges, the business of investing in rental properties continues to attract prospects in certain regions, such as the East Midlands and the West of England, indicating a continued interest in the sector.
