Renters: if you think prices are high now, wait until Labour increase taxation further for landlords!

The government are poised to increase capital gains tax and the industry experts predict that there will be a rush of landlords wanting to sell which will decrease available rental properties and push up prices. 

One major national agent has stated that they alredy have seen a "wave of landlords" exiting the market ahead of the Budget on 30 October.

So what are the proposed changes?

Currently, the maximum tax rate on profit from the sale of second homes is just 24%, compared to 45% for wages. The government is said to be considering bringing the CGT rate in line with income tax rates.

If they do go ahead they will have paid no attention to the Tories disastrous policies such as the removal of tax relief for mortgage interest and the introduction of a 3% stamp duty surcharge had already contributed to landlords selling up and rents spiralling.

But if Labour think they will bring in more money for the Treasury they need to look at HMRC calculations. These show that a 10% increase in the higher CGT rate could backfire and lose the Treasury £2bn in 2027-28.

Key One Property offer LET ONLY or LET & MANAGE at highly competitive rates for landlords.