Buy to let landlords 'worry over CGT and housing benefits'

02 September 2010

Written by David Whittaker

Buy to let property investors are concerned over rises in capital gains tax (CGT) and housing benefits cuts, it has been reported.

New research from the National Landlords Association found confidence among professionals in the private rented sector had slipped for the first time in nearly two years.

Policy manager at the body Chris Norris explained: "Optimism has dropped from the first quarter of 2010 as landlords consider tax changes announced in the emergency budget and they hear talk of a double-dip recession."

Slashes in Local Housing Allowance is also worrying portfolio investors, he stated, with many concerned this could leave their tenants unable to pay rent.

The NLA Landlords' Optimism Index was at 47 points in the second quarter of 2010, down from 51 points in the first three months of the year, with four out of ten respondents worrying a CGT hike could have a negative impact on their business.

However, 54 per cent of landlords are still confident over the outlook for the next three months, anticipating strong demand during a period of economic uncertainty that may put people off buying their own house.

Indeed, the latest Royal Institution of Chartered Surveyors Residential Letting Survey found 27 per cent more respondents noted a rise in rents in the second quarter rather than a fall, as the number of people looking to live in leased property rose for the sixth month in a row.

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