A rise in stamp duty from April, coupled with existing challenges, could mark the breaking point for many buy-to-let landlords, leading to an exodus from the UK property market according to a report from UOWN.

The report has revealed that 83% of all housing transactions will incur stamp duty from April 2025, an increase of 34% on the current thresholds. Based on the average price of a buy-to-let home across Britain, stamp duty bills are set to nearly double in April, rising from £8,452 to £16,190

Haaris Ahmed, Founder and MD of property investment platform UOWN, said: “The proposed stamp duty increase, combined with mounting regulations and rising costs, are pushing many landlords to the brink.

"The UK rental market is already under severe pressure, and the last thing tenants need is more landlords being forced to sell. This will not only drive up rental prices but also create instability, leaving tenants facing the stress and disruption of having to move." 

The report has highlighted the growing imbalance between rental supply and demand across the UK and even if demand stabilises in 2025, more landlords are selling their properties (+37% in December, up from +29% in November), further shrinking the rental stock. As a result UK rents are still expected to rise by 17.6% over the next five years, primarily due to landlords exiting the market.

The average newly advertised rent outside of London stands at £1,341 per month (pcm) - a slight drop of 0.2% compared to the previous quarter. In the capital, tenants still face an average rent of £2,695 pcm.