The main fear for the private rented sector, and for those selling homes to investors, was an exodus of buy to let investors if they were hit with a Capital Gains Tax (CGT) rise from 18% to 40%. Thankfully George Osborne was more modest in his actions and increased CGT to 28% and only then for higher rate taxpayers.

Liz Peace, CEO of the British Property Federation, said, “Simplifying the CGT rise to 28 per cent by not tinkering with taper or indexation relief shows a welcome desire to keep things simple. Thankfully, the rate of CGT has not been brought into line with higher rate tax levels but this is something that many will not be happy about. Particularly, buy-to-let investors who have propped up the housing market over the last 20 years will suffer and this could hit the future supply of rented housing.”

Andrew Sainsbury of GO Lettings in Leeds commented, "Letting agents across the country are reporting shortages in good quality properties to let and with fewer new landlords entering the market, this will inevitably put pressure on rent levels. In some areas, we have seen sizable rent increases this year – a welcome bonus to landlords in the current climate".

Click here for a summary of the implications of the Emergency Budget on the Private Rented Sector

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