Capital Gains Tax burden forces landlords to defer sales plans
A new study by the National Residential Landlords Association suggests some landlords wanting to quit the private rental sector have deferred their plans because of the burden of Capital Gains Tax.
The association’s regular quarterly survey discovered 45 of respondents saying CGT has been a factor in deciding to hold onto property longer than anticipated when first becoming a landlord.
In another part of the survey, more than half of landlords polled who had property with EPC D or below said they will either sell some properties or exit the market altogether should the minimum C plans come back to the table. There is also substantial support for the idea of financial assistance for landlords making energy efficiency improvements, with 85 per cent saying this is vital in driving up minimum standards.
More generally, the survey suggests landlord confidence is increasing after several quarters of record lows.
The survey relates to sentiment in the third quarter of 2023 and this was 7.9 per cent more optimistic than in the previous three months.
The NRLA says the reasons behind this include the government’s decision to abandon plans for a minimum energy efficiency rating of C in rented homes, a fall in inflation and Michael Gove’s announcement that Section 21 will be scrapped only after court reform has been completed.
Confidence was up in every region.
