The capital gains allowance cut introduced in today’s Autumn budget is likely hit renters the hardest.
Adam Day, Estate Agency Growth Leader at one of the UK’s largest estate agencies, eXp UK warned that as a result of the Chancellor’s announcement on capital gains tax, many renters will have “no way out of the rental cycle.”
He said, “We could see some landlords sell up as a result of this but not enough to correct the issue of supply – property is still a solid investment.
“Any taxes or costs applied to landlords tends to find its way tenants in the shape of a rent increase.
“Ultimately it will be the renters that are affected by this the most, with many having no way out of the rental cycle and onto the property ladder, and therefore having no choice but to try and keep pace with rising rental payments.”