The Royal Institution of Chartered Surveyors (RICS) has carried out an interim survey over the past fortnight of its members to assess whether landlords are now seeking to take advantage of the more favourable capital gains tax treatment. Interestingly, the results suggest they are not at this stage looking to do so, with just 2% of landlords currently planning to sell properties at the expiry of tenant leases.
Commenting Simon Rubinsohn, RICS chief economist said: "Fears that landlords would take advantage of the more favourable capital gains tax regime to bail out of the buy-to-let market appear misplaced. Significantly, with the reduction in loan to value ratios by lenders leaving first-time buyers struggling to access the housing market, rents are now rising sharply and the expectation is that this trend will continue. Only 2% of landlords are currently planning to sell properties at the expiry of tenant leases. The incentive to cash in on the lower tax rate is being outweighed by attractive yields."
