Budget 'lenient' on buy to let market

28 June 2010

Written by Gavin Elley

The Emergency Budget was kind to the buy to let market, one expert has said, but portfolio investors may still find it difficult to obtain mortgages.

Tom Entwhistle, director of LandlordZONE.co.uk, has commented that although the increases in VAT and income tax will have an impact on the owners of portfolios, the capital gains tax hike from 18 per cent to 28 per cent will not make a major dent in investment.

"On the whole, despite the earlier fears, the Budget has been relatively kind to business and property investors," he said.

Landlord-friendly policies that have been introduced in the Budget include the reduction of regulations on the sector and the abolishment of the former government's reform of holiday lettings tax incentives, he explained.

Nevertheless, mortgages may still prove difficult to access for property investors until the UK reduces its debts, the economy begins to grow again and banks are in a better position to lend, he warned.

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