LETTING & ESTATE AGENT

RLA proposes landlord CGT waiver to help first-time buyers

RLA proposes landlord CGT waiver to help first-time buyers

The Residential Landlords Association (RLA) is calling for changes to Capital Gains Tax (CGT) to boost the first-time buyer market.

Proposals in the RLA manifesto would see landlords who sell a former rental home to a first-time buyer benefit from relief on any Capital Gains Tax (CGT) payable on the property.

RLA Chairman, Alan Ward said: “This is a sensible policy that could increase the number of properties available to first-time buyers.

“It may also allow a number of landlords to exit private renting, especially those for whom the level of CGT makes selling their property marginal, and who can feel trapped in the sector.

“Offering roll-over relief, makes the sale viable and would see more properties on the market for first-time buyers.”

The proposal comes in the same week the Government announced details of its starter home initiative. Under the scheme 200,000 properties will be built on brownfield land by 2020 and sold at a 20% discount off the market rate to first-time buyers under the age of 40.

In London, the maximum cost of a qualifying home will be set at £450,000; outside London it will be £250,000.