A property lawyer has urged the government to consider reducing Stamp Duty on additional properties, arguing that the move could help shift the growing number of buy-to-let homes sitting unsold on the market.
Lisa Wilson, a partner at law firm Spencer West LLP, believes changes to the rental sector have contributed to the slowdown in property market activity. The Renters’ Rights Act and the abolition of Section 21 no-fault evictions in May 2026 prompted many landlords and letting agents to serve eviction notices before the deadline.
This led to a number of investment properties being put up for sale. However, rising mortgage rates and uncertainty among potential buyers have made it more difficult for sellers to find purchasers, leaving some properties on the market without tenants or buyers.
Wilson believes lower Stamp Duty rates for additional properties in the 2026 Budget could encourage new investors to enter the market and improve sales activity. These buyers would be investing under the current tax and regulatory framework, rather than having to adjust existing plans in response to subsequent changes.
She also stressed the importance of taking a long-term approach to property investment, suggesting that investors should plan over a 10 to 20-year period to help manage political and economic uncertainty.
Flats Continue to Struggle on the Market
Figures released by property portal Zoopla over the summer highlighted a growing divide between house and flat prices. Since 2016, average UK house prices have risen by 43%, compared with a 10% increase for flats.
The weaker performance of flats may partly reflect the high number of properties available for sale, particularly in southern England.
Zoopla examined flats that had remained unsold after six months on the open market. London recorded the highest proportion, with 87% of these properties still unsold. The South East followed at 85%, while East Anglia recorded 84%. Across England, the average stood at 80.5%.
According to Zoopla, the oversupply has been driven partly by landlords leaving the private rented sector and reduced demand for leasehold properties.
With the Budget scheduled for next Wednesday, proposed changes to Stamp Duty could offer a potential route to attracting new investment and helping clear the backlog of unsold properties.
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