Not for the first time, the Leaders Romans Group has given a very different picture of the private rental sector’s health than that painted by almost all of the rest of the industry.

In a statement over the weekend it described the Budget’s ‘no change’ on Capital Gains Tax for second homes as “a big win” for landlords. In addition, LRG’sAllison Thompson – the company’s national lettings managing director – says: “It may now be more profitable to continue letting, rather than exit the market”. 

And on the upcoming energy efficiency regulation changes demanding improved EPC ratings for private rental property, Thompson continues: “if landlords are expected to upgrade older properties to meet EPC standards by 2030, then support measures will be introduced now to make these upgrades feasible. Without assistance, many landlords will face prohibitive costs, which could ultimately reduce the number of available rental properties.”

Elsewhere in LRG’s statement it plays down the impact of the increase in stamp duty on buy to let properties announced by Rachel Reeves: the surcharge rose overnight after the Budget from 3% to 5%. 

LRG’s take on it is: “The change … may see potential investors currently in the pipeline to purchase, reverse out, again putting more pressure on the private rental sector and reducing tenant choice. Having said that, property has always been a long-term investment, and, over time, price inflation and yields have typically delivered good returns to investors. SDLT is a one-off tax paid when you buy a property – but this is a cost that can be deducted from capital gains tax when you sell. So, just as the first introduction of a higher rate for SDLT impacted initially on investment, over time, it’s just accepted as a cost of investment.”

Overall about the Budget, the agency says: “The good news is, from a property perspective, particularly when you take into account the economic news – inflation, base rates and mortgages – the news isn’t too bad at all. And for some, it’s actually very good news!”