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"There's a Budget backlash and landlords are legging it from buy-to-let"

ended 27. November 2024

Brokers and landlords have shared their views on the health of the buy-to-let sector a month on from the Budget. One broker said a client of hers has decided to sell up his entire portfolio:  “There's a Budget backlash and landlords are legging it from buy-to-let. The amateur landlord was already on life support, and on October 30th the Chancellor pulled the plug. Following the Budget, one client of mine decided he'd had enough and asked me to offload all 10 of his properties in what feels like a Black Friday fire sale.” Meanwhile, a professional landlord said: “Since the Budget, we have seen small landlords waving the white flag, offloading their properties faster than a football fan dashes to the loo at half-time.” The views of 5 brokers and landlords a month on from the Budget are below.

5 responses from the Newspage community

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Adam Stiles
Managing Director at Helix Financial Partners
In the immediate aftermath of the Budget, a number of our professional landlords were engaging with us and their accountants with a view to selling properties in the portfolio. However we have found that a lot of those conversations have since quietened down having taken into consideration likely exit penalties to come out of the mortgage(s) early and potential CGT liabilities. The Budget could either put off the desire to grow a portfolio from where it currently is or will see the landlord negotiate harder on a purchase price for anything new. Ultimately this would then lead to the vendor facing a reduced sale figure. From a rental perspective, as has been common over the past 12-18 months, the costs have been passed on from landlord to tenants and with such a shortage of rentals first-time buyers struggling to save the appropriate deposits will see that challenge grow.
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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
Since the Budget we have seen small landlords waving the white flag, offloading their properties faster than a football fan dashes to the loo at half-time. Decades of effort undone thanks to rising taxes, red tape and interest rates that seem to have missed the memo about stability. Why are smaller landlords exiting stage left while the big players stay put? Simple: economies of scale. For a seasoned developer like me, costs spread across a portfolio are manageable. But for the smaller landlord? A single spike in mortgage rates or a lengthy refinancing delay can turn a once-profitable rental into a financial anchor. And when those costs rise, already squeezed tenants bear the brunt. The real irony? Landlords are often painted as villains in the housing narrative. Yet, with every "For Sale" sign that goes up, the rental market loses stock, and competition tightens. Fewer rentals mean higher rents, hardly the outcome policymakers promised.
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Patricia McGirr
Founder at Repossession Rescue Network
There's a Budget backlash and landlords are legging it from buy-to-let. The amateur landlord was already on life support, and on October 30th the Chancellor pulled the plug. Following the Budget, one client of mine decided he'd had enough and asked me to offload all 10 of his properties in what feels like a Black Friday fire sale. Margins are now so tight, he says it’s simply not worth the hassle and he'd rather gift the gains to his kids. Between tax hikes, tenant protections and sky-high mortgage rates, landlords are fleeing the industry in their droves. For small-scale investors, buy-to-let has gone from passive income to active pain. The result? A looming rental supply crisis, with tenants left scrambling for fewer homes at higher rents. Buy-to-let isn’t dead, but for the amateur landlord? It certainly seems it's game over.
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Rohit Kohli
Director at The Mortgage Stop
Landlords are feeling the pinch post-Budget, particularly smaller landlords with one or two properties. The October Budget’s stamp duty changes and rising costs have made it far more expensive to sustain or grow portfolios, leaving many frustrated. First-time or would-be landlords have been hit hardest, with some abandoning their plans entirely. Larger landlords are trimming underperforming properties, but this has a knock-on effect. Tenants hoping to buy these homes often can’t afford them and are left scrambling for alternatives. The current climate of affordability challenges and increased costs is creating a ripple effect, unsettling landlords and tenants alike.
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Michelle Lawson
Director at Lawson Financial
As with everything there will be people that have just had enough and with all the changes to legislation and regualtion, some landlords are panicking and making knee-jerk reactions. However, while smaller accidental/dinner party landlords are selling, the serious property investors are still buying. Fewer landlords and fewer properties will mean an increase in rents due to supply and demand in the longer term.