The changes to stamp duty thresholds next year could encourage tenants to stay longer and could even boost rental demand, Landbay has found.

In the buy-to-let lender’s latest survey, the firm asked landlords how the Government not extending the temporary stamp duty threshold for buyers past the end of March next year would affect the rental market.

Landbay found that 49% of landlords replied that they thought more tenants would be staying put or renting for longer. A further 35% said the move might increase demand.

The threshold change announcement has provided landlords with a "silver lining", Landbay stated, in what was an "otherwise disappointing Budget for them".

The lender found that landlords with medium-sized portfolios (between four and 10 properties) were the most optimistic about the change, with 39% stating that it would increase demand. Almost a quarter (24%) of those with 11 properties or more also championed this optimism.

In terms of regions, it was landlords in London and the South East which remain the most optimistic about stamp duty changes, with 41% believing that it will increase demand.

Sales and distribution director at Landbay, Rob Stanton, said: “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.

"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."

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