subject: Value Of Second Homes And Holiday Homes Questioned [print this page] According to Express.co.uk, there is a new wave of outrage against the possibility of a rise in capital gains tax, a move that will jeopardise the profits of second homes and holiday homes for landlords, MPs and investors alike.
Jane Warren, a writer on the Daily Express, is an owner of a second home in Bow, East London. She first bought the flat in Bow in the late Nineties at a price of 75,000 using the advance that she got from a book. She rents out the property, hoping that the value of the property will help provide the financial support for her children to go for private education.
Considering that the flat is now worth 200,000, they were hoping to sell it in a few years time so that the equity of the asset can help to cover these education costs. Hence, she is most dismayed to learn that there is a possibility of a dramatic rise in capital gains tax, as this will mean that a substantial part of her profit on this long-term investment would go to the government instead. Jane believes that this is unfair on property owners like her because she has already been paying a substantial tax on her monthly income.
In an article published by the Daily Mail, Knight Frank has indicated that there is an additional supply of 6,212 second homes being built across the country, with the South Hams in Devon being the most sought after location, where one in ten properties is a holiday home. Similarly, there are also plenty of holiday homes in North Cornwall, Berwick-upon-Tweed and North Norfolk.
While some may have to alter plans as to when to sell their second homes or holiday homes in view of the market sentiments and the likely change in capital gains tax rate, those who would prefer to keep their holiday homes for the short to medium term will find taking out a holiday home insurance a move that protects them against accidental damages, as well as to insure against any loss in rental.
