Buy-to-let investors 'in for the long-term'

News Category: Industry News

The majority of people looking at buy-to-let properties are aware of the legal and tax issues that surround the investment, an industry expert has said.

A spokesperson for ARLA, Malcolm Harrison, explained that most buy-to-let landlords were serious investors with large portfolios of property and so were unlikely to try and avoid paying tax by not declaring their landlord status.

"The typical buy-to-let landlord invests in the long term. He's a mature financial individual; he's not going to play silly games," Mr Harrison said.

"You don't become landlords by accident. You might [own] some property…but if you're in that sort of league, you have lawyers advising you."

Mr Harrison added that buy-to-let landlords have a number of tax issues to consider but have experts to advise them.

"As a buy-to-let investor, you're liable for tax on the profit, on your rent and you're liable for tax on any capital gain – just the same as any other investment," he explained.

"To all intents and purposes, it's a straight-forward investment, as far as tax is concerned."

In conclusion, Mr Harrison pointed out that the vast majority of buy-to-let investors use an agent who will be aware of all the regulations and allowances available.

A recent report from Paragon showed that buy-to-let investment has remained constantly strong so far in 2007.