Capital gains increase could hit renters

9 June 2010 | By Samuel Dale

The lenders are claiming, through their studies, that hitting landlords could have a knock-on effect for those renting.

Surveying 2,000 people, with pollsters YouGov, researchers revealed that two-thirds in privately rented accomodation believe it is unlikely they will own a property in the next five years.

And nearly three quarters of those aged between 35 and 44 are pessimistic about owning a home in five years.

Without parental help the average age of a first time buyer is 37, according to market reasearchers GfK.

A whopping 90% think that buying a home is becoming increasingly difficult in the UK.

Meanwhile, only 6% believe that it is not becoming more difficult and 4% don’t know.

Keith Street, head of Kensington, says: “Renting from a private landlord is now a more important type of accomodation than housing auauthority and local authority property combined, and our results show a trend towards renting privately as the favoured alternative to buying property among younger adults.

He added: “Kensington would like to urge the government to consider the impact that any proposed changes to capital gains tax may have on landlords. If changes are too onerous and discourage property investment they will not only impact landlords, but also the millions of people who rely on private rental property to house them and their families.”

Of the 7.98m people privately renting in the UK - 13% of the population - it is most popular among the young with 30% of 18-34 year olds renting and only 5% of those over 45.

Nearly one-fifth of Londoners rent privately compared to just one in ten in the east of England.