Former Chancellor Alistair Darling announced last year that Labour would cut tax relief on furnished holiday homes, a decision reversed by George Osborne in the emergency Budget.

Capital Gains Tax (CGT) on these properties will remain at 10% and gains made can be absorbed if investors buy a more expensive property later. Owners can also claim tax relief on expenses for the property, such as refurbishment work.

Chris Baguley, director of Auction Finance, said: “All the signs were that there would be a cut in the range of tax reliefs on furnished holiday lets, but the perk has been saved. We’re seeing more and more people in the auction room keen to pick up a bargain home to let out.”

Clare Nessling, operations director at overseas mortgage specialist Conti, said: “This will contribute to the growing confidence among prospective overseas property buyers.

“Low interest rates and a weakening euro mean that it is even more affordable for British buyers.

Sponsored

Are your clients ready for the first Making Tax Digital reporting deadline?

Sponsored by BM Solutions

“If brokers haven’t considered the overseas mortgage market as a source of additional income, there has never been a better time to do so.”