Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property118. Read the original article for full details.

Capital Gains Tax Rises as Key Concern for UK Landlords

Capital gains tax (CGT) has climbed back up the list of concerns for UK landlords, according to a recent Property118 Landlord Sentiment Survey. This shift comes despite the absence of any government announcements or Budget proposals to increase CGT.

The report notes that discussions about higher CGT have become more frequent, even though no official changes have been made. The article suggests that the wider political conversation may be influencing landlord sentiment. Since Andy Burnham became Prime Minister, he has repeatedly stated that wealth and assets should play a bigger role in funding public services, and has not ruled out further tax reform. While there has been no announcement of a CGT rise, he has refused to rule out a wealth tax and has indicated that assets are undertaxed compared to labour.

Economists, tax advisers, and property commentators have also begun debating whether CGT could become part of future tax discussions. The Property118 survey reports that CGT is now one of the top priorities driving landlords to consider leaving the private rented sector (PRS).

The article highlights that many landlords are now focused on maximising the equity in their portfolios as the market changes. It also describes the services offered by the Landlord Sales Agency, which specialises in helping landlords sell tenanted properties or portfolios quickly and with minimal involvement. The agency claims to provide a faster, more convenient exit for landlords, with no fees or commission, and access to a large database of buyers.

A case study in the article describes a landlord who sold a portfolio with a vacant possession value of £1.6 million for £1.4 million within 27 days, avoiding estate agency fees, the cost of obtaining vacant possession, refurbishments, void periods, and the stress of managing multiple sales.

For letting agents and inventory clerks, the increased focus on CGT and portfolio exits may signal changes in landlord behaviour and the volume of properties entering the market.