Tax changes 'won't lead to sell-off'

CGT changes 'will not lead to buy-to-let sell-off" class="imageframe alignright" height="200" src="http://pictures.directnews.co.uk/liveimages/Team+Association+To+Let_1455_18509621_0_0_7009148_300.jpg" width="200"/>A pre-emptive sale of buy-to-let property ahead of changes to capital gains tax (CGT) thresholds next month is "unlikely", according to The Money Centre.

Chancellor Alistair Darling announced in his first Budget on Wednesday CGT would be simplified to a single rate of 18 per cent from April.

This prompted speculation of upheaval in the market, with Steve Gilder, a partner in PricewaterhouseCoopers, telling the Independent newspaper: "There will probably be a rush of property sellers on April 6th."

However, this is unlikely to be the case argued The Money Centre, one of the UK's largest independent buy-to-let mortgage brokers.

"Our most recent research among buy-to-let landlords shows the majority regard their investment as a medium to long term strategy," said Lynsey Sweales, marketing and PR director of The Money Centre.

"Twenty two per cent of those interviewed anticipated holding on to their properties for between 11 and 20 years with a further 19 per cent intending to stay in the market for anything from six to ten years."

Further research from the organisation also finds only 13 per cent of landlords said they were likely to sell any letting property in the current quarter.

"The reduced capital gains tax rate will definitely benefit investors eventually," continued Ms Sweales.

"I think a rush to cash in come next month is unlikely given most landlord are committed to a longer term strategy."