25-04-2008
Survey shows no sign of panic among landlords
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Just two per cent of landlords plan on selling their properties to take advantage of new more favourable capital gains tax treatment, a new study has uncovered.
Changes to the charging of capital gains tax were introduced at the start of the new financial year on April 1st, with a single rate of 18 per cent implemented, compared with a previous boundary of between 24 and 40 per cent which was charged.
As a result, the survey by the Royal Institution of Chartered Surveyors (Rics) predicted a large number of landlords seeking to sell their portfolios to take advantage of the new rules.
However, the research found that many were looking to keep hold of properties as rental prices continue to rise.
Rics chief economist Simon Rubinsohn said: "Fears that landlords would take advantage of the more favourable capital gains tax regime to bail out of the buy-to-let market appear misplaced."