2024 has been quite a year in the buy-to-let market. Despite new purchase lending growing by 13% according to the latest UK Finance Figures, it has been tumultuous if largely positive.

Landlords have been something of a target for governments of all colours in recent years, although despite everything, the buy-to-let market continues to be incredibly resilient.

Taking a quick look at the year that was, average buy-to-let interest rates at the start of the year were 5.4%, falling steadily with declining swap rates. These were pushed lower by growing confidence by the money markets in both UK property and UK economic stability.

It was this fall in rates which led to the significant increase in buy-to-let lending, particularly in the second quarter of the year, with landlords and property investors seemingly undeterred by the announcement of a general election in the pouring rain mid-May.

In Q2, as rates fell to an average of 5.19%, buy-to-let lending surged by 26% compared to the same time in 2023. Although there was also an uptick in buy-to-let repossessions, these were on the whole, legacy problems from 2022 and 2023 that had worked their way through the books.

Landlords continued to invest despite the Tory’s proposed Renters’ Reform Bill – introduced in May, just five days before the general election announcement.      This threatened to abolish assured shorthold tenancies and tighten up Section 21 ‘no fault’ evictions.      It also aimed to strengthen tenants’ rights, limiting rent increases to no more than once a year and giving      tenants the right to request a pet, among other things. This caused alarm amongst some      of the landlord population, particularly accidental landlords and those with just a couple of properties who may struggle to cope with any new regulations.

What did seem to make landlords and property investors draw an intake of breath, was the incredibly long wait for the budget.  An almost four-month delay from election to budget, led businesses across the country to pause as they waited to see what the impact would be.

The effect of the budget on landlords was one few were expecting – an instant additional 2% on stamp duty for all property purchases classified as a second home or investment properties.      This took effect immediately after the budget, raising stamp duty from an additional 3% up to a mighty 5% for properties up to £250,000 and up to 17% for properties in the very highest bracket worth more than £1.5m.

The Renters’ Reform Bill hasn’t gone away either, it has just metamorphosed into the ‘Renters’ Rights Bill’ with many of the same amendments and an even tougher stance on Section 21 ‘no fault’ evictions. In the background, landlords also have the potential looming regulation around Energy Performance Certificates and the need to make their properties more energy efficient.

So what can we learn from the year that was 2024? The old Greek saying that the only constant in life is change, was epitomised this year with government, rate and regulatory changes.

What has remained the same however, is the need for good quality rental accommodation.  The public sector just cannot meet the needs of all those who need to rent, so it is beholden on the private rental sector to meet this need.

Landlords have proven remarkably resilient to all that has been thrown at them. There is however, arguably a lack of appreciation by those in power, of just how essential private landlords are, providing housing for those who need it because they either cannot, or choose not, to buy.

While there is always room for improvement in every sector, renters’ rights need to be balanced with the rights of those investing money to provide that housing. While the bigger landlords have the capacity, at the moment, to absorb many of the changes, we don’t want to drive out some of the smaller landlords. Those with just a handful of homes, also fulfil a vital role, often providing high quality accommodation at lower rents.

The biggest lesson we can learn from 2024 is that the market is dynamic. It can absorb change but let us also support landlords as they are providing an under-served sector of society with the quality housing that they need.

Matt Kimber is CEO of Molo Finance