Buy-to-let landlords holding on to properties
Published: 23-Apr-2008
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Changes in Capital Gains Tax (CGT) have not had a significant impact on the UK's buy-to-let market, it has been revealed.
According to new research from the Royal Institution of Chartered Surveyors (Rics), the CGT changes, which were introduced at the start of this month, have not led to a large number of rental properties being put up for sale.
A mere two per cent of buy-to-let investors intend to sell off some of their portfolios at the expiry of tenant leases.
Simon Rubinsohn, chief economist for Rics, commented: "Fears landlords would take advantage of the more favourable capital gains tax regime to bail out of the buy-to-let market appear misplaced.
"Significantly, with the reduction in loan-to-value (LTV) 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 added that high rental yields were proving more attractive to property investors than the incentive offered by the lower tax rate.
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