Could Buy to Let Investors Face Heavier Taxes?
This morning I've been listening to part of a debate on GLR (94.9 on the FM band) about London property prices.
Some callers to the show blame landlords for raising property prices by buying up lots of buy to let property and they propose various forms of tax or other limitations to reduce this investor activity.
It's an interesting debate.
Of course, people who argue for more taxes on landlords often forget that buy to let and the growth of renting is simply a reflection of the way we live and work today, because as more and more people have to move jobs more often, so renting gives them that added flexibility.
It also ignores the fact that despite high property prices there are still many people who can buy but choose to rent instead as it fits their lifestyle more.
Sure, the activities of investors do raise house prices but it's our lifestyles (including the hire and fire work culture) that are driving the choice to rent instead of buying too.
So, I think it's unlikely that the government will do much to further tax buy to let.
However, I do think that second home owners who leave their other property empty and create ghost towns in the process - are more likely to come in for more punitive taxes in the future.
I'll continue with my look at electrical regulations tomorrow.
Finally, look out for Rosie Millard's piece in the Sunday Times Home Supplement on Sunday 28th Jan, which should include a quote or two from me!
Back to main site: www.lettingfocus.com
Some callers to the show blame landlords for raising property prices by buying up lots of buy to let property and they propose various forms of tax or other limitations to reduce this investor activity.
It's an interesting debate.
Of course, people who argue for more taxes on landlords often forget that buy to let and the growth of renting is simply a reflection of the way we live and work today, because as more and more people have to move jobs more often, so renting gives them that added flexibility.
It also ignores the fact that despite high property prices there are still many people who can buy but choose to rent instead as it fits their lifestyle more.
Sure, the activities of investors do raise house prices but it's our lifestyles (including the hire and fire work culture) that are driving the choice to rent instead of buying too.
So, I think it's unlikely that the government will do much to further tax buy to let.
However, I do think that second home owners who leave their other property empty and create ghost towns in the process - are more likely to come in for more punitive taxes in the future.
I'll continue with my look at electrical regulations tomorrow.
Finally, look out for Rosie Millard's piece in the Sunday Times Home Supplement on Sunday 28th Jan, which should include a quote or two from me!
Back to main site: www.lettingfocus.com
This entry was posted by lettingfocus, on
Monday, January 22, 2007.
