CGT increase could benefit first-time buyers in the UK

First-time homebuyers in the UK could benefit from the increase of capital gains tax (CGT), according to a sector commentator.

Helen Adams, managing director at FirstRungNow.com, said such an increase could discourage buy-to-let landlords from purchasing properties that may be suited for first-time homebuyers in the country.

“Anything that helps to leave more properties that are more affordable for first-time buyers is going to be a good thing. We would agree with that as a proposal," she said.

She stressed that an increase in CGT for a person who owns a second property has been mooted, and this could result in a positive gain for first-time homebuyers at the lower end of the residential market.

In May, the UK government stated that it would be reviewing the rates of non-business CGT and amending them to make it more similar to the charges applied to income.