RICS Survey of Landlords

Thursday 24 April 2008

RICS survey of landlords' intentions following Capital Gains Tax changes

No sign of Buy-to-Let investors fleeing the housing market

The quarterly RICS Residential Lettings Survey asks surveyors to estimate the percentage of landlords who are planning to sell their properties at the expiry of tenant leases. In the three months to the end of January, the proportion fell to 4.6%. This compares with a figure of 6.5% in the previous three month period.

Simon Rubinson, RICS chief economist commented:

"Fears that landlords would take advantage of the more favourable capital gains tax regime to bail out of the buy-to-let market appear misplaced.

"Significantly, with the reduction in loan to value ratios by lenders leaving first-time buyers struggling to access the housing market, rents are now rising sharply and the expectation is that this trend will continue. Only 2% of landlords are currently planning to sell properties at the expiry of tenant leases.

"The incentive to cash in on the lower tax rate is being outweighed by attractive yields and generally poor news flow on the property market."

Source: www.rics.org

Download the full report in PDF format from www.rics.org