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However, as well as existing property investors selling up, JLL has warned that higher taxes are also likely to deter new landlords from entering the market.
According to JLL, the inflated stamp duty will amount to the equivalent of 11 months’ worth of rent, compared to seven months before the Chancellor’s October Budget.
Buy-to-let landlords face stamp duty bills of up to £16,190 following Rachel Reeves’s Budget tax raid, new research shows.
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Following Ms Reeves’s decision to raise stamp duty in her maiden Budget, head of the Institute for Fiscal Studies Paul Johnson said it would “make things even more immobile and increase rents even further”.
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Based on the average price of a buy-to-let home across Britain, stamp duty bills will almost double from £8,452 to £16,190 in April 2025, according to research from JLL using ONS, Zoopla and Rightmove data.
The threat to property investors has emerged after the Chancellor confirmed plans to undo tax breaks brought in by the Conservatives in 2022 and increase stamp duty on second homeowners from 3pc to 5pc.
“Exit costs – or capital gains tax – remaining static post-Budget means we expect we’ll continue to see fewer new entrants than landlords leaving the market.”
The prospect of rising stamp duty bills has already prompted an increase in landlords exiting the market, as Rightmove data revealed a 6pc rise in new sellers in November.
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Stamp duty is paid by a buyer on the purchase price of a home in England and Northern Ireland, although it is one of the most controversial taxes in the country – criticised by consumers and economists alike.
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Marcus Dixon, head of UK living and residential research at JLL, said: “Entry costs for buy-to-let investors have risen sharply post-Budget.