Budget does nothing to tempt new buy to let investors

03 April 2012 Categories: News

Budget does nothing to tempt new buy to let investors

According to Landlord Assist, one of England’s biggest referencing and eviction firms, the Chancellor missed out on a golden opportunity to boost the UK’s economy when he failed to offer any type of financial incentive to investors in the buy to let market during the Budget.

It seems the Chancellor attempted to help most tax payers by increasing the non-taxable personal allowance and reducing the top rate of income tax by 5p in the pound, but he didn’t offer any encouragement to private rental sector landlords so that they would be tempted to expand their existing portfolios.

Managing director of Landlord Assist, Graham Kinnear, commented on the outcome of the budget by saying; “At a time when the UK is experiencing a dramatic housing shortage and finding rented accommodation is possibly the hardest it has ever been, the Government needs to recognise the role played by the private rented sector and encourage landlords to increase their portfolios further.”

Stephen Parry, the commercial director at the firm then went on to say; “We were hoping for measures that would allow landlords to be eligible for capital gains tax breaks if they reinvested their profits back into property.”

Reinvestment would not only put money back into the economy, it would also provide a bigger choice for renters and possibly a slowing of the rate at which rental amounts are rising.