In­crease in land­lords plan­ning to pur­chase

The Peterborough Evening Telegraph - - Property Today -

LAND­LORD As­sist, the na­tion­wide ten­ant evic­tion and rent col­lec­tion firm, be­lieves the buy to let sec­tor will con­tinue to be a sound in­vest­ment de­spite land­lords be­ing pre­sented with a 10 per cent in­crease in Cap­i­tal Gains Tax (CGT) in last week’s Emer­gency Bud­get.

The rate at which tax is charged on non-busi­ness as­sets has now in­creased from 18 to 28 per cent for higher earn­ers, but not to the 40 per cent or 50 per cent that had been widely pre­dicted.

Many land­lords feared that a sharper rise in CGT would de­ter new land­lords from en­ter­ing the buy to let sec­tor and af­fect the fu­ture sup­ply of rented hous­ing, es­pe­cially at a time when the UK is ex­pe­ri­enc­ing a hous­ing short­age.

But Gra­ham Kin­n­ear, man­ag­ing di­rec­tor of Land­lord As­sist, be­lieves that, with the in­crease not as bad as first thought, prop­erty in­vest­ment will re­main a sound fi­nan­cial propo­si­tion.

Mr Kin­n­ear said: “Prop­erty in­vestors need to be en­cour­aged to build and grow a port­fo­lio, and a tax sys­tem whereby one party takes all the costs and risks and yet the other takes half the profit is clearly un­fair. Whilst any rise in CGT is in­evitably a blow to land­lords, we are de­lighted that the fi­nan­cial in­cen­tive for prop­erty in­vest­ment re­mains.”

“Land­lords tend to en­ter the buy to let mar­ket know­ing that prop­erty is a long-term in­vest­ment rather a short-term gain. We do not be­lieve that this rise in CGT will cause too much dis­rup­tion to the sec­tor.”

Stephen Parry, Com­mer­cial Di­rec­tor at Land­lord As­sist, agrees. He says: “It is widely ac­knowl­edged that some tax in­creases were in­evitable given the size of the deficit so we are pleased that these have been mod­er­ate to ac­knowl­edge the need for in­vest­ment in the prop­erty sec­tor.”

Land­lord As­sist pro­vide free, no obli­ga­tion ad­vice to land­lords and let­ting agents through­out the UK on all land­lord and ten­ant mat­ters. They can be con­tacted on 08707 662288 or via their web­site www.land­lor­das­sist. co.uk.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.