Kate Lay, Landwood Group partner, shares her thoughts on the 2025 spring statement announcement – and what it means for landlords.
Despite the promised planning reforms aimed at boosting GDP by 0.2 per cent and February’s inflation decline to 2.8 per cent, the Chancellor’s Spring Statement provided little optimism for the private rental market.
With the UK economy shrinking by 0.1 per cent in January and interest rates holding at 4.5 per cent, the freeze on income tax thresholds, combined with rising inflation and living costs, is squeezing disposable incomes and leaving people more cautious with their spending.
For renters, this means fewer are able or willing to move, while buyers are becoming more selective.
The market is already strained and the reality is that the challenges are mounting for landlords. High interest rates and rising costs have already made buy-to-let less profitable and now, the upcoming Renters Reform Bill adds another pressure, pushing some landlords out of the market.
While the Bill may provide protections for tenants, its impact on landlords cannot be ignored. Fewer landlords in the market means fewer rental properties, which could drive up rents and limit options for tenants.
Looming stamp duty changes on April 1st have sparked a frenzy of deals, but once they hit, the market could stall – leading to fewer transactions.
Business rates also remain a concern for commercial landlords. While there’s short-term relief for retail and hospitality properties, without long-term reform, the current system will continue to place a financial burden on landlords, making it harder for them to sustain their businesses.
As a result, it’s no surprise we’re seeing a surge in landlords turning to us to auction their investment portfolios, seeking some certainty in an uncertain market.
For the property market to remain stable, landlords need a viable environment to operate in. Without it, the entire system is at risk.
