Tax hike 'could persuade landlords to sell up'

News Category: Industry News

This article was brought to you by Rentman the premium rent management software.

Letting agents could be about to see landlords drop out of the private rented sector because of the government's proposed hike to capital gains tax.

According to a survey by letting agents network LSL Property Services, a quarter of landlords are thinking of selling their properties before the tax is increased from its current rate of 18 per cent.

The poll discovered that nine out of ten respondents would battle against any planned tax hike.

Simon Embley, chief executive of LSL Property Services, explained that increasing capital gains tax could drive people out of the housing market.

He added: "If potential landlords are discouraged from investing, we will see a large proportion of the demand for house purchase disappear and house prices may fall."

This comes shortly after Jeremy Leaf, spokesman for Rics, stated that because more sellers are moving back into the housing market, demand for rented accommodation could be about to increase, which means rents could go up.

Find out more about letting agency software