Direct Property News

June 1, 2017
uk property investment

UK city house price growth slows to 5.3%

According to the latest data and analysis from Hometrack, UK city house price growth is running at 5.3%, down from 8.7% in April 2016. Eleven cities have a faster rate of growth than 12 months ago. Manchester is the fastest growing city while price inflation in London is at its lowest level for 5 years. Lower growth over the last 12 months is largely a result of prices increasing by just 0.1% over 2016H2.  In the three months to April 2017, average prices have increased by 3.2% with above average growth recorded in large cities such as Manchester (4%), Birmingham (3.8%) and Edinburgh (3.7%). Divergence in growth rates over last year Eleven of the twenty cities…
May 31, 2017
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British buy to let landlords face 13% rise on average in tax profit

Buy to let landlords in the UK could see an average 13% increase in their taxable profit due to the reduction in mortgage relief and other change which will have a substantial effect on their profits, it is claimed. The mortgage tax relief changes introduced in April, which are being phased in over the next few years, mean that interest relief on buy to let mortgages is being gradually reduced. By 2020 some 100% of buy to let finance costs will be restricted to the basic tax rate of only 20%. According to the research from online letting agent Upad the difference between tax due to be paid in the 2017/2018 financial year and 2018/2019 will…
May 29, 2017
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Landlords’ taxable profit set to ‘sharply increase’

With the Government now almost two months into rolling out Section 24 and its new buy-to-let tax relief system, online letting agent Upad believes landlords will see an average 13% increase in their taxable profit from 2017/18 to 2018/19. The changes, which started being phased in on 6th April 2017, mean that landlords must now pay tax on turnover, rather than the difference between rental income and mortgage interest. Until April, landlords could deduct the full cost of their mortgage interest payments, or any other property finance, on their rental properties before they paid tax. Two months in, mortgage, loan and overdraft interest costs can no longer be considered in calculating taxable rental income. The changes…
May 29, 2017
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New funding for would-be landlords

A new £20m funding initiative has been launched with the intention of supporting a generation of first and second-time property investors The initiative from Market Financial Solutions (MFS) is targeted at refurbishment and restoration projects in the £1.4m empty properties across Britain. Funding On-going until June 2018, the £20m funding drive will be made available to nationwide applications through bridging loans in the range from £100,000 to £1m. With Britain gearing up for another General Election on June 8th and against the looming backdrop of Brexit, MFS’s property investment drive offers landlords fast access to monies required to support their short-term investment plans. Over the next year, it is anticipated that traditional asset classes such as…
May 26, 2017
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UK property prices set to rise by over 6% by 2021 fuelled by buy to let surge

Property prices across the UK will rise by 6.1% in the next five years, bringing the average property value to almost £300,000, according to new research. It is expected that property hotspots will emerge in the North of England with employment opportunities and business start-up rates helping to close the gap on the current property hubs of London and the South. The research from Barclays Bank also predicts that buy to let investments and high net worth millennial investors are set to lead the way in fuelling the property market going forward and they are likely to look for higher yields outside of London. Overall, despite an uncertain economic and political climate, the report says that…
May 25, 2017
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Residential sales rose over 20% in UK in April year on year, latest data shows

Residential transaction in the UK reached almost 100,000 in April 2017, some 20.3% higher than the same month last year, the latest official figures show. There were 99,910 residential transactions and 9,980 non-residential sales. However, this was down by 3.2% month on month, according to the data published by HMRC and April 2016 saw sales fall due to tax changes. Indeed, the data report suggests it is best to avoid direct comparisons of residential sales between April 2017 and 2016 due to the unusually low level of transactions in April 2016 due to the introduction of extra stamp duty on additional homes. HMRC also pointed out that non-tax factors may have played a role as well,…
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