24
Jun
CML: Budget decisions will help property market in long-term
The Council of Mortgage Lenders (CML) has suggested that the
government's recent housing decisions will have a positive impact
on the property market in the future.
On Tuesday (June 22nd), the emergency Budget revealed that capital
gains tax (CGT) will increase from 18 per cent to 28 per
cent.
While this will affect homebuyers' choices over whether to buy and
sell property, the CML's director general Michael Coogan suggested
that if it improves the economy then it is not a bad move.
He said: "Steps that help the economy to recover and help to
maintain mortgage rates at affordable levels for most people are
the measures that will underpin a healthy housing market in the
long term."
Mr Coogan also admitted that the tax rises could dampen property
buyers' confidence, affect housebuilding and curtail support for
housing costs.
Yesterday, operations manager of the Association of Residential
Lettings Agents Ian Potter commented that the increase in CGT is
likely to dissuade potential property investors from buying, having
a wider impact on the housing market.
