Spring into action and sell your BTL portfolio fast

18 April 2024 384 Views

There wasn’t much by way of good news in the Spring Budget for landlords and property investors last month.

Although some rumours were swirling around the potential suspension or even scrapping of the Stamp Duty surcharge for second properties, the extra 3% has remained in place, discouraging buy-to-let investment in particular.

For those who also have furnished holiday lets within their portfolio, these will no longer benefit from the current tax reliefs as of April 2025 and be treated the same as long-term residential lets for tax purposes.

If these announcements weren’t enough, the Chancellor added salt to the wound by giving the Multiple Dwellings Relief (MDR) a complete makeover.

Previously, a relief was available to those buying two or more properties in a single transaction. Now, to be able to make any kind of saving, six or more purchases is the sweet spot – either for an individual or buying group from June 2024.

Property experts are saying that this will further deter the supply and construction of up to 25,000 properties.

Have the stars aligned?

Perhaps the only positive change to come out of the Budget for landlords was the reduction in Capital Gains Tax (CGT) for higher-rate taxpayers, which has now dropped from 28% to 24% in 2024/25, while the basic rate remains at 18%.

Now the optimist in me sees some opportunity here. Despite the CGT allowance now being 76% less than it was 2022/2023 at just £3,000 per year, those higher-rate tax payers who were considering selling some or all of their rental portfolio now have an incentive to do so.

And if they have multiple properties in their portfolio, there will be a buying group or professional investor looking to cash-in on the six property sweet spot buy.

Furthermore, could the abolishment of the furnished holiday let tax regime boost the supply of long-term rental properties as landlords look to secure a regular income for less management?

So, while the announcements gave us little to shout about, we should always look for the silver lining.

Cash-in on CGT reduction fast

If you’re now ready to save thousands in CGT by selling your rental properties, Open Property Group will provide you with an instant cash offer for one or multiple buy-to-lets.

With zero finders’ fees, agent fees or legal fees, you’ll save even more by selling to us too.

And if you’re a landlord looking to cash-in on a 6+ unit property purchase to benefit from the Multiple Dwellings Relief, our sister company, LandlordBuyer, may have just the portfolio for you.

Get in touch – we guarantee to buy any rental property in England and Wales, regardless of condition or tenure.