Higher CGT 'would help first-time buyers'

Date:Tuesday 8th June 2010
Author: Max Freedman

An increase in capital gains tax (CGT) would help first-time buyers as entry-level properties might not be bought up by investors, says a sector analyst.

Helen Adams, managing director of FirstRungNow.com, claimed that "opportunistic landlords" have been buying small properties to rent them out and this has raised prices.

In her view, this has led to many houses being out of reach financially for aspiring homeowners and this situation has been going on for too long.

"CGT should certainly be raised to a more realistic level, discouraging this sort of investment in small properties for rent," stated Ms Adams.

She suggested that more one and two-bedroom properties should be left for first-time buyers and anything the government can do to bring about this state of affairs is a positive move.

This week, Moneynet.co.uk suggested an increase in CGT could be to the detriment of individuals utilising save-as-you-earn schemes run by their employers.