More than two million homes have gone “missing” from the rental market after the stamp duty surcharge was introduced a decade ago, it has been revealed.

Research by Hamptons claimed there would be 2.2 million more homes available to rent had the surcharge not be introduced and the market had been able to continue to grow at pre-2016 levels.

The surcharge achieved its core objective of lowering the number of properties bought by investors.

It has seen the number of rentals households effectively plateau, according to Hamptons.

It said fewer landlord purchases, combined with some investors choosing to sell, have resulted in 25.4% fewer homes available to rent in February 2026 than in February 2016.

Almost overnight, the market tilted away from investors, meaning far fewer homes have been added to the rented sector.”

Aneisha Beveridge, Head of Research at Hamptons, said: “Higher rates of stamp duty for anyone buying a second home have broadly delivered what the government of the day set out to achieve.

“Almost overnight, the market tilted away from investors, meaning far fewer homes have been added to the rented sector and more have found their way into owner-occupation over the last decade.

Decade anniversary

The so-called ‘second home’ stamp duty surcharge was introduced 10 years ago on 1^st April 2016. It applied to additional properties bought in England and Scotland.

The surcharge marked a shift between the tax treatment of owner-occupiers and investors, making it more expensive to buy additional properties.

The surcharge was initially set at an extra 3% on top of existing stamp duty rates in England, before being later increased to 5% in October 2024.

There is a similar 5% surcharge in Wales, while in Scotland, the equivalent rate is now 8%.