23-04-2008
Survey reveals buy-to-let confidence
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The buy-to-let mortgage market looks set to remain in rude health, the results of a survey by the Royal Institution of Chartered Surveyors (Rics) have suggested.
With the government introducing a more favourable arrangement for capital gains tax, the institution surveyed landlords to see whether they would be willing to take advantage and sell up.
However, despite the old rate of between 24 per cent and 40 per cent being replaced with a new levy of 18 per cent, only two per cent of buy-to-let mortgage holders confirmed that are looking to offload properties.
Simon Rubinsohn, chief economist at Rics, commented that the benefits of the tax incentive are being outweighed by attractive yields.
"With the reduction in loan-to-value ratios by lenders leaving first-time buyers struggling to access the housing market, rents are now rising sharply and the expectation is that this trend will continue," he explained.