A significant development is emerging in the rental market that 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 (SDLT) 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 crosses this level, SDLT becomes payable and a return must be filed. Failure to do so could result in penalties and interest charges.

This issue is expected to affect up to 150,000 households within three years — a significant and largely unforeseen consequence of the legislation.

Why this matters

  • Renters face new and unexpected tax exposure they may be entirely unaware of
  • Landlords and letting agents may need to guide tenants through unfamiliar reporting requirements
  • The change highlights how quickly legislation can create unintended consequences in everyday housing costs

How we can help

If you are a tenant with a long-term tenancy, a landlord, or a property professional advising clients in this area, please contact us. We can advise on how this may affect your specific circumstances and assist with SDLT returns where required.