Insurance News Archive

Buy to let insurance policyholders 'boosted by capital gains news'

Posted by Jonathan Walker

Buy to let property investors are rushing back into the market, with brokers seeing a surge in enquiries since the announcement that capital gains tax would not rise by as much as some predicted.

According to the Financial Times (FT), several lenders had reported a considerable increase in prospective clients following the chancellor's decision to hike the tax to a lower-than-expected 29 per cent last week.

David Whittaker, managing director of Mortgages for Business, told the news paper that the "bogeyman has gone away" and that the argument for investing in buy to let property "remains strong".

He added: "Confidence is returning and we’ve certainly seen a pick up in interest from potential buyers."

The FT also reported that The Mortgage Works, the buy to let arm of leading high street building society Nationwide, had said that it was "extremely busy" with new enquiries.

Last month, Tom Entwistle, director of advice site LandlordZONE.co.uk, described the UK housing market a "stable choice" for buy to let property insurance customers.

05 Jul 2010