Buy-to-let property rush unlikely

Buy-to-let landlords have welcomed Chancellor Alistair Darling's move in the Budget to reduce Capital Gains Tax to a flat rate of 18%.

But claims by Pricewaterhouse Cooper that there will be a rush to sell property when the reduced rate comes into effect have been dismissed as ‘unlikely’ by The Money Centre, a buy-to-let broker.

Lynsey Sweales, spokesperson for The Money Centre, said: “Our research among buy-to-let landlords shows that the majority regard their investment as a medium to long-term strategy. More than a fifth of those interviewed anticipated holding on to their properties for between 11 and 20 years with a further 19% intending to stay in the market for anything from six to 10 years.

“Only 13 per cent of landlords said they were likely to sell any letting property in this current quarter and so, while the reduced Capital Gains Tax rate will definitely benefit investors eventually, I think a rush to cash in come next month is unlikely given most landlord are committed to a longer-term strategy.”