23 Jun

Budget 'could affect future landlord investments'

Budget 'could affect future landlord investments'

The new proposals announced in the Budget could have an effect on the number of landlords who invest in the property market, it has been suggested.

Yesterday (June 22nd), chancellor George Osborne released the details of the emergency Budget, which revealed an increase in capital gains tax (CGT) from 18 per cent to 28 per cent.

According to Ian Potter, operations manager of the Association of Residential Lettings Agents, this increased tax rate for higher earners could dissuade potential property investors from buying.

He said: "The chancellor risks driving those landlords paying the higher rate of tax from an already very fragile housing market, at a time when they should be actively encouraged to stay and, ideally, further invest."

Mr Potter added that landlords will be particularly penalised by CGT when they sell one home and buy another.

This blow to the property market comes just a day after Paragon Mortgages announced that plans among landlords to purchase residential houses had nearly doubled since last year.

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