"Clarity should help release pent-up demand"

Darrell Walker, group sales director at Chetwood Bank for ModaMortgages and CHL Mortgages: “Politically, it’s easy to target landlords when seeking to increase tax receipts, yet excessive tightening of regulation and taxation on landlords’ risks creating negative knock-on effects for the rental market. It can place upward pressure on the rental market, either because existing landlords have higher costs to manage, or because it disincentivises new landlords from entering the market.

“Nevertheless, with the announcements now clear, landlords, investors, buyers, and brokers can properly assess the details and make better informed decisions. This clarity should help release pent-up demand, and we expect market activity to pick up in the coming months and into the new year.

“Council Tax reform is long overdue, though today’s changes introduce some added complexity and cost for landlords operating in the highest-value parts of the market. With many landlords already navigating several recent policy shifts, it is reassuring that more extensive reforms were not introduced, helping preserve some sense of stability in the private rented sector.

“What’s more, with the Council Tax surcharge applying only to properties valued above £2m and not set to be implemented until 2028, the majority of landlords are unlikely to be significantly affected in the short to medium-term.”