Adam Pigott, CEO of OpenBrix, said: “Great to see that landlords didn’t bear the brunt of the Budget tax burden today.
"The rental market is already in crisis due to the severe imbalance between supply and demand and further penalising landlords would have only intensified the issue further.
"An increase in stamp duty on second home purchases will leave a sour taste though, as it will see an increase in costs for those looking to invest within the sector, although it's unlikely to deter them from doing so."
Jonathan Stinton, head of mortgage relations at Coventry Building Society, said: “Landlords have already been clobbered with the 3 per cent stamp duty surcharge, now by going to 5 per cent overnight it’s shooting up over £6,000.
"It’s a significant blow to the sector and, without dramatic housebuilding to improve supply, it could lead to a shortage of rental homes, and push rents up.”
Reeves also didn't move on the stamp duty increases due to come in next year.
The previous government's temporary increase to the thresholds expires in March which is when they return to their previous lower levels, meaning any transaction thereafter will be subject to higher taxes.
Marc von Grundherr, director of Benham and Reeves, said: "It’s a case of trick not treat for homebuyers following today’s Budget, as they’ve once again been shown the cold shoulder, with the government refusing to extend current stamp duty relief thresholds.
"Whilst this won’t deter homebuyers from pursuing their aspirations of homeownership, it will add to the cost of purchasing for the vast majority, particularly those climbing further up the ladder."
Abolishing non-dom status
As was to be expected, Reeves pledged to scrap the “outdated non-dom tax regime” and said she would introduce a simpler residence-based regime.
Closing the loopholes in the scheme would create £12.7bn over the next five years, according to the chancellor.
This includes ending the use of offshore trusts to shelter assets from IHT and scrapping the planned 50 per cent tax reduction for foreign income in the first year of the new regime.
“Those that make the UK their home should pay their taxes here,” she said.
Reeves also announced an extension to temporary repatriation relief to three years but Caroline Le Jeune, private client tax partner at RSM UK, said the “devil would be in the detail”.
Simon Goldring, private wealth lawyer and partner at Excello Law, said: “We still await the detail, in particular the length of time a non-domiciled person will need to be resident in the UK to be subject to the new residence based regime.
"Of particular interest is the IHT tail. It was previously suggested that there would be a 10-year IHT tail for those affected by the new regime when they leave the UK. Recent leaks have indicated that this might reduce to three years.