Investors also have a tax burden to contend with already, so hitting landlords with a new wealth tax will affect tenants as investors will end up looking at alternative investments.
(PRWEB UK) 28 September 2012
Colordarcy.com claims that a new wealth tax would achieve little and only serve to turn more investors away from investing in UK property and reduce the supply of private rental accommodation when people need it most.
Loxley McKenzie Managing Director of Colordarcy.com commented; “There is more demand for rental properties in the UK now as people opt for the private rented sector because they do not want to, or cannot afford to buy.
It is also widely reported that investors in UK property are benefitting from rising rents. However investors also have a tax burden to contend with already, so hitting landlords with a new wealth tax will affect tenants as investors will end up looking at alternative investments.”
Colordarcy.com highlight that owner-occupiers don’t pay any tax on the sale of their properties, but second-home owners and private landlords already pay capital gains tax on any profits when they sell their investment property.
Many property investors have already been put off by all the negative sentiment surrounding property and this latest news will do little to inspire confidence. Surveys have already shown that less than 44% of investors are considering purchasing additional investment property in London in the remainder of 2012.
Confidence is worse when it comes to the rest of the UK with just 18.5% of investors looking at investing outside the London according to a survey by Young Group. This is despite landlords benefitting from rising rents and therefore higher yields.
UK property investors own 3.7m homes providing accommodation for an increasing number of people who cannot afford a home of their own in the UK, therefore, according to Colordarcy, more should be done to boost confidence in property investment rather than add more uncertainty.
For many UK landlords, investing in property is used as a means to have something put by for retirement.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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