A major development is emerging in the rental market — and it could affect thousands of tenants in the coming years.

New analysis shows that changes introduced by the Renters’ Rights Act may unintentionally pull long term renters into stamp duty liabilities for the first time. As open ended tenancies continue year after year, many leases could exceed the £125,000 valuation threshold. Once the total rent payable exceeds this threshold SDLT is payable and a return is needed. Failure to do this could lead to penalties and interest for non-payment. This could create unexpected tax bills and administrative burdens for tenants who’ve never had to think about stamp duty before

This issue could affect 150,000 households within just three years, signalling a significant shift in the UK rental landscape

Why this matters:
• Renters face new and unforeseen tax exposure
• Landlords and agents may need to guide tenants through unfamiliar reporting requirements
• The change highlights how quickly legislation can impact everyday housing costs

How we can help:
Contact us if you need advice on how this might affect you or your tenants or you need help completing SDLT returns for long tenancies.