The chief executive of lettings and sales agency giant Foxtons says this week’s surprise stamp duty rise for buy to let properties won’t deter investors.

The duty was increased from 3% to 5% on all so-called additional homes, just hours after Chancellor Rachel Reeves delivered her Budget.

Foxtons’ Guy Gittins says “The additional stamp duty charged on the purchase of second homes will add to the upfront costs of investing for those looking to grow their portfolios.

“However, the scale of the increase is unlikely to deter landlords considering the long term gains of this asset class.

“We can expect the heightened level of market activity seen this year to continue, with market momentum strengthening as we head into 2025, further elevated by forecast interest rate reductions.”

He was also optimistic that Reeves’ decision not to apply Capital Gains Tax increases to the sale of residential property portfolios may keep existing landlords in business. 

“We’ve already seen buy-to-let investors return to the lettings market and today’s Budget should reassure many more to remain within the sector. This is good news for tenants across the capital in particular, as it will deliver desperately needed additional stock back to the market.”