Alternative Bridging Corporation has responded to yesterday’s Budget, which it said marked a line in the sand for property investors.
While speculation of an increase to Capital Gains Tax (CGT) on residential property was unfounded, property investors were hit with an additional 2% surcharge on Stamp Duty Land Tax (SDLT) for additional dwellings, increasing the extra SDLT burden to 5%.
Alternative Bridging said this would be a more welcome change for property investors than a CGT hike, adding that the Budget announcement signalled a period of greater certainty.
Jonathan Rubins, director and chief commercial officer, said: “At Alternative Bridging, we understand the one thing that markets don’t like is uncertainty and the lead up to this Budget came with more than its fair share of speculation and uncertainty regarding the impact on the property market.
“The SDLT surcharge on additional dwellings may have increased but CGT rates on residential property have remained the same.
“Whereas CGT exposure is unknown at the outset of a property investment – depending on capital appreciation – SDLT is more straightforward, and the additional cost can sometimes be mitigated by negotiating a lower price.
“This Budget sets a clear benchmark for property investors, offering them greater clarity and stability regarding the future taxation framework.
“It’s important to remember that we’ve weathered significant challenges such as the global financial crisis and the Covid-19 pandemic, and at Alternative Bridging, we continue to provide flexible lending solutions to meet our clients’ evolving needs.”
ABC said it has seen notable growth in demand for its specialist products, including bridging finance, development funding, and the Alternative Term Loan, which is free from early repayment charges (ERCs).
This loan, especially popular among buy-to-let investors, enables clients to manage portfolios without facing large upfront fees or penalties.
Rubins added: “Our focus remains on providing adaptable financial solutions—whether through short-term bridging finance, development funding, or longer-term solutions like our Alternative Term Loan.
“As the property market evolves, we remain committed to offering bespoke solutions tailored to our clients’ needs, ensuring their success in any market environment.”
