Tax boost for landlords

Buy-to-let property investors have been given a boost with news of changes to the capital gains tax.

The government has announced that investors who have owned a rental property for nine years or more will see a decrease in the amount of tax they pay.

Alistair Darling has revealed that capital gains tax will fall from 24 per cent to 18 per cent for these people and it is just another piece of good news for landlords, reports the Times.

Many industry figures are reporting that housing affordability continues to deteriorate for young buyers, meaning that demand for rented accommodation is soaring.

The Association of Residential Lettings Agents (Arla) says that the favourable market conditions for buy-to-let investors look set to continue.

"What we are seeing is the traditional counter-cyclical effect. When there is a soft or falling sales market, you have high rental interest," Malcolm Harrison from the organisation told the newspaper.

"We have every reason to believe that this will happen in this slowdown, whether it lasts six months or six years," he added.

High interest rates and the independent increasing of mortgage rates among lenders due to the global credit crunch have led to many first-time buyers being priced out of the housing market in recent months.

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