Buy to Let Sellout?
Government legislation comes into force today which could see many ‘buy to rent‘ landlords selling up and place their propeties on the market, the rate of Capital Gains Tax has been cut from 40% to 18% (over value of £9,600) in the recent budget. This could lead to even more properties on sale, lowering prices still further. Good for buyers, bad for sellers.
With contraints being put on credit given out by lenders, many are feeling they want to get out and this change in Capital Gains Tax is the perfect reason. On a national scale house prices dropped by 2.5% during March.
Bradford & Bingley and HBOS have announced that they require ‘buy to let’ borrowers to top up their deposit if their mortgage rises above 85% of the value of the property and many small scale lanlords are bailing out.