Buy-to-let recovery hit by CGT



From the FT:



Last week saw the inclusion of two new lenders into the maket: Precise Mortgages, backed by US-based private equity firm Elliott Associates, and Aldermore Bank, which is owned by venture capital company Anacap Financial, both began offering a range of new mortgage products for property investors. Paragon also signalled their intention to return to new lending after withdrawing from the market in 2007. You may also be aware that the Mortgage Works increased it's Loan-to-Value to 80%.


This is all very good news for investors…but what of the impending rise in Capital Gains Tax (CGT)…? With a significant number of investors and landlords putting their properties on the market, this could mean a dramtic shaortage in available accommodation for the rental sector…


…which could push up rents and/or slow down the housing recovery as more properties flood the market?


What do you think? And what's your property investment strategy?


You can read the full article in the FT here >>>