Arla: CGT rise does not consider needs of landlords

News Category: Industry News

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Arla has criticised chancellor George Osborne's Budget, stating that it does not have any consideration for the needs of landlords.

According to the letting agent body, the decision to increase capital giants tax [CGT] is not as extreme as predicted by some in the industry, but will still force some landlords to consider selling up and leaving the housing market.

Operations manager Ian Potter explained that because the housing market is currently "fragile", the government should be trying to persuade landlords to stay in the market and even invest further.

"With this rise in CGT, the government is taking a huge risk in destabilising the future supply of homes to the UK," he said.

Mr Potter added that the chancellor's decision not to include rollover relief as part of his Budget this week "is a big gamble".

The Residential Landlords Association has also been quick to speak out about the Budget, with chairman Alan Ward stating that the CGT increase could cause problems for husband and wife landlords.

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