Private landlords have called on the Government to abandon plans to increase Capital Gains Tax (CGT) and instead work to reduce red tape swamping the lettings industry.
That's the finding from Upad's latest Rental Confidence Index survey, which asked 257 UK buy to let landlords: “Do you feel more or less confident in the market than you did last month?”
Just over half, 54 percent, said they did as rents and demand are rising, as are capital values.
The surveyed property investors are also feeling good about the market as interest rates are still low and do not show any signs of increasing for some time.
In addition, respondents cited that, due to a steady increase in property prices and rental levels over the last year, it is easier to let and good rates are available.
However, many of the less confident landlords mentioned the proposed changes to CGT.
Their comments suggested that if the 40 percent Capital Gains Tax comes in, the buy to let market would become less attractive.
Landlords called the tax plan appalling, especially as there are no plans for taper relief.
James Davis, Upad's CEO, said: “Those who are more confident are looking at the strength of the buy to let market, rent levels and tenant demand.
“Those who are less confident are looking at the legislative and fiscal spheres. It seems clear that the market is healthy, and that the problems that landlords have are ones imposed on them from outside.”
Davis believes private rentals will be crucial to the UK housing market in the coming months as job cuts come into effect and social housing demands put councils under more stress.
• Landlords registering their London properties with John D Wood & Co lettings in June or July will receive £500 worth of John Lewis vouchers once the property has been let.
Lisa Simon, the company’s director, said: “The summer lettings market is always our busiest time prior to the start of the new academic year and we are thrilled to be offering this incentive to new landlords.
“Why not get in touch with your local participating office to find out what makes our lettings service truly rewarding?”
John D Wood & Co has participating offices in Battersea, Chelsea, City & Docklands, Fulham, Kensington, Primrose Hill, South Kensington and Wimbledon.
