Next year’s adjustment to the Stamp Duty threshold is anticipated to motivate tenants to remain in their rental homes for extended periods and could potentially fuel a surge in rental demand, according to findings from a recent survey.

In its latest research effort, buy-to-let lender Landbay posed a question to landlords: “The Government will not extend the temporary Stamp Duty threshold for buyers past the end of March next year. How do you think this might affect the rental market?”

The responses revealed a striking trend: 49% of landlords expect tenants to either stay put or opt for longer rental terms, while another 35% foresee a spike in demand for rental properties.

Interestingly, landlords with mid-sized portfolios displayed the most pronounced optimism. Among those predicting heightened demand, 30% owned between four and ten properties, and 24% managed portfolios of 11 properties.

Geographically, the sentiment was particularly strong in London and the South East, where 41% of optimistic landlords were based, underscoring the regional impact of the anticipated changes.

Rob Stanton, sales and distribution director at Landbay, remarked: “The threshold change has given landlords cause for optimism in what is an uncertain time. But it is worth remembering that the market is incredibly resilient as it is.

“Demand for decent rental properties already continues to outstrip supply, with many tenants ready and willing to rent across the country.”

Stanton further elaborated on the current climate: “We are finding that, while some disaffected landlords are sitting on their hands, others are exploring investment opportunities across the country.

“We would not be surprised if the threshold change gives the market a further boost. As a buy-to-let lender we remain committed to innovating to meet the needs of landlords. We are ready, willing and able to support them.”

The survey suggests that while the Stamp Duty adjustment looms as a challenge for some, it also offers a beacon of opportunity for others, setting the stage for a dynamic and evolving rental market in the coming year.