D_Property

Whether, you’re new to the landlord-life, a landlord by chance or an experienced property investors, here are five things you should know about rental property.

1. House prices have remained stable

Activity in the buy-to-let sector has bounced back from April’s increase on stamp duty and any uncertainty that has hit the country after Britain’s decision to leave the EU.

Rightmove actually reported a 30% increase in the number of investor enquiries between the second and third quarter of this year.

Review and expert advice page Which? had a look into three of the biggest house price indices and they found out that the average house price increased by 1.6% between June and August. They also warned though that this rate can vary from area to area.

2. Mortgage interest tax relief changes

Following rules currently in place, landlords can deduct mortgage interest payments from their income before calculating the amount of tax they’ll have to pay.

Starting from April next year, the amount landlords can claim will slowly be reduced until 2020, when costs will be deductible at the basic rate of 20%.

This change will especially have an impact on those who pay tax at 40%, and might see a lot of landlords having a significant part of their profits removed.

3. Stamp duty increase

Whilst George Osborne might not be the country’s Chancellor anymore, one of is most controversial policies is still in place. Since April this year, landlords are facing a hike in stamp duty by 3%.

This adds a rather significant cost onto some (more expensive) properties.

Exception to this rule are inherited properties as well as more niche investment forms like hotel investments.

4. Right to Rent checks

Before signing a contract, landlords (or the tenant management) need to make sure their tenants are legally allowed to live in the UK.

If a landlord fails to arrange for that check, they will face a fine of up to £3,000 if they were actually letting their property to a tenant without sufficient rights to live in the country.

5. More buy-to-let changes in the Autumn Statement

Communities secretary, Sajid Javid, may have hinted that further property taxation could be coming along.

Whether there’s any solid foundation to Mr Javid’s statement remains to be seen. Landlords and property investors should keep a keen eye out for new-Chancellor Philip Hammond’s Autumn Statement on 23 November.

Source: https://www.buyassociation.co.uk

November 3, 2016
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Investing in property? Here are 5 things worth knowing

Whether, you’re new to the landlord-life, a landlord by chance or an experienced property investors, here are five things you should know about rental property. 1. House prices have remained stable Activity in the buy-to-let sector has bounced back from April’s increase on stamp duty and any uncertainty that has hit the country after Britain’s decision to leave the EU. Rightmove actually reported a 30% increase in the number of investor enquiries between the second and third quarter of this year.
November 2, 2016
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One in four property sales in UK is buy-to-let or second home

About 25% of properties bought in the UK in the third quarter of 2016 were a buy-to-let or second home purchase, figures recently released by the tax department revealed. Following the 3% stamp duty surcharge coming into effect earlier this year, more accurate figures can now be published, indicating how many investment properties were bought over a certain period of time. The HMRC data revealed that the Government has collected about £670 million in stamp duty since introducing the new stamp duty rules.
November 2, 2016
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UK housing market expected to be strong and active throughout Brexit process

The path towards Brexit will dictate what happens in the UK housing market over the next few years but it is expected to remain reasonably strong and active, according to a new analysis. There may be some turbulence along the way with article 50 to be enacted by march 2017 and the country set to leave in 2019, but the latest forecast from real estate firm JLL says that there will still be moderate growth with the residential market picking up again from 2020 onwards.
October 31, 2016
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Property vs. Pensions

The Bank of England’s Chief Economist Andy Haldane got himself into hot water in the press last month when he suggested that property is a better investment for retirement than a traditional pension. Speaking to the Sunday Times, Haldane said that while a pension should be the top way to save for retirement, in reality it was “almost certainly property”. He continued: “As long as we continue not to build anything like as many houses in this country as we need to… we will see what we’ve had for the better part of a generation, which is house prices relentlessly heading north.”
October 31, 2016
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New action plan aims to give UK property owners better protection from flooding

A new, independent action plan report launched in the UK aims to help people protect their homes and businesses from the risk of flooding and recover more quickly if the worst happens. The Property Flood Resilience Action Plan explores the role of building regulations and certification, in encouraging use of flood resistant construction methods and how rigorous independent standards can provide confidence in flood products across the industry.
October 31, 2016
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Residential rents up 2.3% year on year in UK

Private rental sector prices paid by tenants in Britain increased by 2.3% in the 12 months to September 2016, unchanged compared with the year to August 2016, the latest official data shows. There is some regional variation with the data from the Office of National Statistics (ONS) showing rents up by 2.5% in England and 0.1% in Wales but down by 0.1% in Scotland. Rental prices increased in all the English regions over the year to September 2016, with rental prices increasing the most in the South East with growth of 3.5% while prices across the country excluding London increased by 2.1%.
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