Tax cuts on buy to lets would clear sales backlog, claims lawyer
Summary
A property lawyer argues that reducing Stamp Duty on additional properties could help absorb the current backlog of former rental homes coming onto the market. The article links this supply overhang to the Renters Rights Act, the end of Section 21 no-fault evictions from May 2026, higher mortgage rates and weaker buyer demand, with Zoopla data suggesting flats are particularly affected in parts of England.
Why it matters
Surveyors may see continued pressure in the sales market for former buy-to-let stock, especially flats and leasehold properties, which can affect valuations, comparables and time-on-market assumptions. The policy backdrop also matters for advising clients on investment appetite, exit strategies and local market liquidity.
Key points
- Lawyer says lower Stamp Duty on additional properties could improve market liquidity.
- Renters Rights Act and the end of Section 21 are cited as drivers of landlord sales.
- Higher mortgage rates and buyer uncertainty are leaving some former rental properties unsold.
- Zoopla data suggests flats have underperformed houses over the past decade.
- London, the South East and East Anglia were highlighted as areas with high proportions of unsold flats.
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