Capital gains tax 'would affect buy-to-let market'

Posted: 14 Jun 2010 11:21:49 GMT

The buy-to-let property market could be hit significantly if the capital gains tax is increased, as landlords may be less willing to sell.

Alan Ward, chairman of the Residential Landlords Association, believes it will be "devastating" if the government implements the rise during the emergency budget.

He said: "Landlords and investors will stop selling property, which will frustrate the market."

Mr Ward also stated "the general standards of property will deteriorate" if landlords are not purchasing new places to rent.

He was speaking after research from Kensington showed two-thirds of people living in rented property are not expecting to buy a house in the next five years.

The results indicated nearly eight million people rent accommodation and the mortgage firm highlighted the importance of the buy-to-let market to the supply of houses for those consumers.

Many of the population appear to be pessimistic about the chances of buying a first house, with 68 per cent believing the demand for private rental accommodation will rise by 2015.


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