24 Jun

CML: Budget decisions will help property market in long-term

CML: Budget decisions will help property market in long-term

The Council of Mortgage Lenders (CML) has suggested that the government's recent housing decisions will have a positive impact on the property market in the future.

On Tuesday (June 22nd), the emergency Budget revealed that capital gains tax (CGT) will increase from 18 per cent to 28 per cent.

While this will affect homebuyers' choices over whether to buy and sell property, the CML's director general Michael Coogan suggested that if it improves the economy then it is not a bad move.

He said: "Steps that help the economy to recover and help to maintain mortgage rates at affordable levels for most people are the measures that will underpin a healthy housing market in the long term."

Mr Coogan also admitted that the tax rises could dampen property buyers' confidence, affect housebuilding and curtail support for housing costs.

Yesterday, operations manager of the Association of Residential Lettings Agents Ian Potter commented that the increase in CGT is likely to dissuade potential property investors from buying, having a wider impact on the housing market.

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