The hike in VAT announced in the Budget is unlikely to speed up any recent improvement we have seen in the UK housing market.

But Oswestry based property lawyer Richard Lloyd believes it will not deter the county’s many buy-to-let landlords and may even see them increasing their portfolios if prices are kept down.

“Unfortunately the Budget needed to introduce some harsh measures to prop up the economy and I think most people accept that,” says Mr Lloyd, a Partner with GHP Legal, one of the largest law firms in the North Wales and Shropshire area.

“Sadly the VAT hike is undoubtedly going to dampen what appeared to be hopeful beginnings of a housing market recovery for home-owners but I doubt that it will instigate a flood of buy-to-let properties coming on to the market.”

“GHP Legal works on behalf of a significant number of buy-to-let clients in Oswestry and surrounding border areas, who are in the market for the long term benefits of a regular income stream.”

If anything, a further slowing in market prices could well provide them with the ideal opportunity to increase their portfolios.”

Additionally, the increased levy from 18 per cent to 28 per cent for Capital Gains Tax for higher rate taxpayers and the retained rate of 18 per cent for lower-rate taxpayers could encourage more buy-to-let purchasers.”

Funding may of course be seen as an issue but it is still available if you know where to look for it.”