Bad Budget for Buy-to-Let?
The emergency budget on 22nd June is likely to cause a few problems for landlords. And they are not the kind that can be resolved by claiming on buy to let insurance.
The big fear is of a huge hike in capital gains tax, which could make a big hole in long-term profits for investment landlords. A base rate rise from eighteen to forty or even fifty per cent is being talked about and many long term investors are trying to off-load their portfolio before the change can be made.
Newer investors in the market will not have made significant capital gains, because of the cooling in property prices. But if there is a real improvement in the property market they may have to look at their options too.
If the buy-to-let market shrinks it may have an effect on landlords' insurance as the savings available from economies of scale will shrink too. This could be made up with a rise in buy to let insurance premiums.
News brought to you by Insure My Let Property providing UK landlords with a comprehensive amount of let property insurance.
June 07th 2010