Government urged to protect rental market

Posted: 21 Jun 2010 12:12:41 GMT

Landlords should be given a helping hand by the government with its emergency Budget, according to one organisation.

The Association of Residential Letting Agents (Arla) suggested chancellor George Osborne should keep capital gains tax (CGT) at its current rate in order to avoid driving landlords out of the market.

Increasing the tax for entrepreneurial business activity could create a shortage in rental property supply as investors sell off their assets and would discourage future investors from putting money into residential houses, Arla said.

Operations manager Ian Potter noted this could leave some people without a roof over their heads, stating: "If rental homes are removed from the sector because of changes to CGT, it will put further strain on an already struggling market."

Last month Arla claimed residential rent prices were on the rise, indicating a recovery in the housing market which could be reversed with a rise in CGT.


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