A recent study indicates a notable uptick in the number of landlords opting to sell their properties. It seems that they're selling up due to a number of factors ...
This has also led to a 60% rise in the total liability for CGT on residential property disposals, amounting to £1.8 billion.
Several factors have contributed to this trend:
- Tax Law Adjustments: The government has tightened tax regulations on buy-to-let properties, diminishing their appeal as an investment.
- Potential Property Market Crash: The looming threat of a property market downturn could result in substantial financial setbacks for landlords.
- Escalating Operational Costs: With the rise in expenses like energy bills and maintenance, it's becoming increasingly challenging for landlords to secure profits.
Landlords contemplating the sale of their properties are advised to weigh the potential ramifications of such a move. It's crucial to ensure compliance with all pertinent tax regulations.
The data suggests that the government's strategies to temper the buy-to-let market are yielding the intended outcomes. However, it's uncertain if this trend of landlords divesting from their properties will persist.
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