What's happened
UK landlords are selling properties at record rates, with 18% of homes for sale previously rented. This trend is driven by concerns over potential capital gains tax increases in the upcoming budget, alongside rising rental prices and regulatory pressures.
Why it matters
What the papers say
According to Hilary Osborne in The Guardian, landlords are increasingly selling properties due to fears of a capital gains tax increase, with 18% of homes for sale previously rented. This is echoed by Vicky Shaw in The Independent, who notes that average rents have surged, with London rents hitting a record £2,694. Shaw also highlights that the number of inquiries per rental property has decreased, indicating a shift in tenant competition. Both sources emphasize the financial and regulatory challenges landlords face, with Shaw stating that many landlords are raising rents just to break even on their costs.
How we got here
The UK rental market has faced significant changes due to tax reforms and regulatory pressures. Recent data indicates a growing trend of landlords exiting the market, influenced by fears of increased capital gains tax and stricter energy performance regulations.
Common question
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What tax increases is Labour considering in the upcoming budget?
As Labour prepares for its first budget under Chancellor Rachel Reeves, the party faces a complex dilemma regarding tax increases. With a significant public finance shortfall looming, questions arise about how these potential changes will affect working people and the broader economy. Here are some common questions and answers surrounding this critical issue.
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