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Landlords 'considering Selling Up Over Capital Gains Tax Hike'

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A quarter of landlords claim they are considering quitting the buy-to-let sector ahead of the new Government's planned hike in capital gains tax, research showed today.

Around 26% of landlords said they were thinking about selling their properties before the tax is increased from its current rate of 18%, according to lettings agency network LSL Property Services.

A further 71% of investment landlords said a rise in the tax would make them reconsider making future investments in property.

Nine out of 10 landlords also said they opposed plans to hike capital gains tax.

The Government signalled its intention to raise capital gains tax in its coalition agreement, when it said it would change the rate paid on non-business capital gains to a level similar to those applied to income.

This has been interpreted as meaning the tax will be increased from its current rate of 18% to 40% or even 50%.

But the plans, which are expected to be included in this month's emergency Budget, have sparked opposition from right-wing Conservative MPs, with ex-ministers David Davis and John Redwood leading criticism that it could hit entrepreneurs and savers.

The LSL research found that although landlords make returns from both renting out their property and house price rises, they tend to place greater importance on the capital gains, which will be hit by the tax.

It said that while 30% of investors placed equal importance on rental income and house price rises, 36% considered increases in the value of their property to be the most important aspect of their investment, a quarter of whom said they judged their investment on capital gains alone.

Simon Embley, chief executive of LSL Property Services, said: "Foisting a tax hike on property investors will drive many from the housing market - at a time when its recovery is still perilously fragile.

"If potential landlords are discouraged from investing, we will see a large proportion of the demand for house purchase disappear and house prices may fall."

The group warned that people who had invested in property instead of a pension would be worst hit, as they were most likely to have held properties for long periods.

More at:

http://www.independent.co.uk/life-style/house-and-home/property/landlords-considering-selling-up-over-capital-gains-tax-hike-1988489.html

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Who are they going to sell them to? If the do flood the market, where are the gains they were worried about being taxed on going to come from?

Edited by Cogs

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Simon Embley, chief executive of LSL Property Services, said: "Foisting a tax hike on property investors will drive many from the housing market - at a time when its recovery is still perilously fragile.

Excellent news.

Not heard of sustainability sonny? - That's what a true recovery should entail, you VI slime bag.

"If potential landlords are discouraged from investing, we will see a large proportion of the demand for house purchase disappear and house prices may fall."

I want to swear. I want to smote this vile creature riddled with self-interest.

But let us just say, he is poor in spirit.

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NONSENSE!!!!! They are all in it for the long term.

Just a lot of sabre rattling. It will interesting to see if the new tax is brought in with immediate effect on June 22nd with the Budget, or if there is any delay. Delay usually spells disaster and creates a rush to react before th event. If it is happening now, then it's on the basis that whatever the change, it will be a higher tax for BTL owners.

As they have skewed the market and contributed to the bubble, I think the tax should be at least back to the pre 2007 levels before which most BTL would have been bought.

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Around 26% of landlords said they were thinking about selling their properties before the tax is increased from its current rate of 18%, according to lettings agency network LSL Property Services.

Looks like they're too late thinking about it as the budget's supposed to be on June 22. Mind you they might catch an auction.

Unless the increase isn't introduced immediately and say starts from next April.

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hopefully the rise will introduced from April 2011. Then we have a good few months for the scum to off load their properties. It will add to, not create HPC, IMO.

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Just a lot of sabre rattling. It will interesting to see if the new tax is brought in with immediate effect on June 22nd with the Budget, or if there is any delay. Delay usually spells disaster and creates a rush to react before th event. If it is happening now, then it's on the basis that whatever the change, it will be a higher tax for BTL owners.

As they have skewed the market and contributed to the bubble, I think the tax should be at least back to the pre 2007 levels before which most BTL would have been bought.

I'd say immediate effect will cause most BTL owners to hold and not sell, and simply take as much rental income as possible. (Unless forced to sell because they can't keep up payments).

If they introduce it next April, then I it will spell disaster for house prices, since the rush of properties will have to push down the prices. If this happens might be able to pick up some bargains next February, and the sellers will really be pushing hard to complete before April!!

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Glad to see that Simon Embley, VI for LSL Property Services, isn't discussing those long-past, and doubtless unjust 2004 allegations of misbehaviour...

http://www.thisismoney.co.uk/news/article.html?in_article_id=394942&in_page_id=2

'A document from Nuttall's lawyers sent to Norwich Union in February this year sets out a litany of drunken, louche behaviour, with Embley apparently central to every episode'.

Read more: http://www.thisismoney.co.uk/news/article.html?in_article_id=394942&in_page_id=2#ixzz0pcXpdOk6

Edited by juvenal

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Look at them 'Not panicking' :lol:

In Cornwall for the past week.... 557 properties either new or amended.

Number gone SSTC so not yet sold .... 25. Yeah. No sign of panic at all.

Last7Days.gif

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We'll all be inconvenienced by idiot estate agents tho won't we. 'Ive got some peolpe in the office now who would like to view the property, we'll be there in 5 mins, that's ok isn't it'

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Unprofessional buy to letters propping up market with io mortgages based on over leveraged equity.

Be awful for the nation if these genius saints and martyrs left the market, how we all shall suffer!

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Unless the increase isn't introduced immediately and say starts from next April.

No way they'll do that.

hopefully the rise will introduced from April 2011. Then we have a good few months for the scum to off load their properties. It will add to, not create HPC, IMO.

For exactly that reason. I think they could allow/encourage a slow unwinding.. but that would cause a year of people panic selling.

Great for HPCers.. but not likely.

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I'd say immediate effect will cause most BTL owners to hold and not sell, and simply take as much rental income as possible. (Unless forced to sell because they can't keep up payments).

If they introduce it next April, then I it will spell disaster for house prices, since the rush of properties will have to push down the prices. If this happens might be able to pick up some bargains next February, and the sellers will really be pushing hard to complete before April!!

err.

no.

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The average is 224 days to sell, so you have until Friday, 20 August 2010 to get it on the market. 11 weeks. :o

TOMMay2010.gif

At the right price it will sell in days.

At the wrong price it could be years.

The average means nothing

tim

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Landlords cut off nose to spite face in kamikaze flooding of the market - "If I can't have my capital gains - no-one can!"

I wonder what they will all do when rates rise?! They will be happy for any capital gains then. Was it not Nationwide who were going to add 1.5% to new BTL loans in the coming year?

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  • 224 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • up 5%



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