Insurance News Archive

Buy to let insurance policyholders 'will still struggle to obtain finance'

Posted by Jonathan Walker

Last week's Emergency Budget was "kind" to buy to let insurance policyholders, but many will still find it hard to get finance, an industry website has said.

According to LandlordZONE.co.uk, a number of measures announced by chancellor George Osborne were "landlord friendly" and would not have too serious an effect on future investments.

Tom Entwistle, the site's director, said: "Whilst the VAT increase and increasing income tax will have their effects on activity generally, the rise in capital gains tax for high-rate tax payers to 28 per cent should not have a great impact on investment."

He added, however, that many landlords would still have difficulty accessing mortgage products until the overall "debt burden" is relieved and the economy "starts to grow again".

Earlier this month, the National Landlords Association said that the capital gains tax hike would affect the "vast majority" of buy to let insurance policyholders who supplement a modest income with their lettings activity.

28 Jun 2010