The decision to not raise capital gains tax on residential property will have an immediate impact on the second home market as owners are now less inclined to sell their property.
This could present new challenges for house hunters who were hoping for the increase in taxes to trigger a selling frenzy that would have created a larger pool of properties to choose from. As this is now not the case, previously hesitant buyers will be motivated to finally start their property search to avoid missing out.
The Chancellor’s decision to leave capital gains tax (CGT) on residential property and buy-to-let properties unchanged. With supply already tight across the rental market, increasing CGT would have likely discouraged landlords from maintaining or expanding their portfolios, adding further upward pressure to rental prices and impacting affordability for renters.”
