Are Lettings Getting More Taxing?

Nick Winters, partner at St Albans accountants and business advisors Kingston Smith, gives a guide to the changing face of residential property letting

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For a long time, investing in residential property has been attractive because of its potential profitability with the added benefit of long-term capital growth. The reduction in maximum pension contributions has led many to see residential property as an alternative to planning for the future. However, its allure has waned recently. Slowing price rises have coincided with government policy aimed at encouraging home ownership, especially for first-time buyers. This combination has affected many with residential portfolios.

What has happened?