How to Sell Your Tenanted Property to avoid CGT Increase: A Guide for Landlords in Reading
With growing financial pressures, many landlords are considering selling their rental properties. WhiteKnights can offer a seamless solution for landlords who want to sell without disrupting tenants, attracting investors looking for buy-to-let properties.
Given the growing pressure on landlords due to rising costs, tax changes, and increasing regulations, a significant number are looking to sell their properties. Many landlords face the dilemma of wanting to sell but not wanting to disrupt reliable tenants who have been with them for years. This is where WhiteKnights could offer a solution, particularly in Reading, where the local market is witnessing a strong demand for buy-to-let properties.
The Challenges Landlords Face
The 2023 and 2024 rental market has seen more landlords consider selling due to burdens like the Renters' Reform Bill, tax hikes, and higher mortgage costs​. Nearly a quarter of landlords are planning to sell in the coming year, citing financial pressures and new compliance demands as primary motivators​.
Adding urgency to this is the looming 2024 Budget, where a potential increase in Capital Gains Tax (CGT) has created concern for many landlords​. This could significantly affect those selling investment properties, prompting many to sell now to avoid potential higher taxes. With property appraisals on the rise, now may be the best time for landlords to secure a sale before any CGT changes take effect.
Why Landlords Should Act Now
On top of the potential CGT increase looming in the October budget, landlords in Reading face a growing list of challenges due to more potential policy changes on the horizon:
- Introduction of National Insurance on rental income.
- New EPC requirements pushing costs higher.
- Rent freezes, Section 21 removal, and longer tenant protections.
- Removal of the 20% mortgage interest credit, squeezing profits.
These changes, along with the difficulty of evicting tenants in hardship situations, could dramatically impact your bottom line. Selling now could help you avoid future financial strain.
Why Sell with WhiteKnights?
While WhiteKnights may no longer handle lettings, they are well-positioned to help landlords sell properties with tenants in place. This can appeal to other landlords looking to expand their portfolio, especially those operating through a Limited Company, which has become increasingly popular due to tax advantages and better mortgage options. By targeting these buyers, WhiteKnights can facilitate a smooth transaction, ensuring the property remains tenanted, thus maintaining income for the new owner while giving the current landlord an exit strategy without displacing tenants.
Marketing to Ethical Landlords
One key selling point could be appealing to landlords who feel responsible for their tenants. Many landlords want to sell but are hesitant due to the potential impact on good tenants who rely on stable housing. WhiteKnights could market their ability to match sellers with investors who are open to acquiring properties with tenants already in place. This approach not only helps landlords offload properties but also ensures a win-win for all parties involved, including the tenants.
Conclusion
By positioning WhiteKnights as the go-to agent for landlords looking to sell tenanted properties, the agency can attract a niche market of ethical landlords who want to ensure a seamless transition for their tenants while benefiting from the rising interest in buy-to-let investments through Limited Companies. We are here for an informal chat, so please get in touch!
Phone: 0118 334 7410 WhatsApp: 07706 261160 Email: firstcontact@whiteknights.co.uk