Autumn Statement Thoughts
A healthy private rental sector is absolutely essential to the housing market, for those who either cannot or do not wish to buy. The plan in the Autumn statement to increase stamp duty by 3 per cent on the purchase of buy-to-let properties announced is disappointing, given the importance of privately rented property to this county’s housing needs, however I do not foresee it having a substantial impact.
Existing landlords will be unaffected and new investment will be considered alongside the returns available elsewhere. With pension contributions heavily restricted, many will continue to invest in property. The lettings market will continue to see strong demand and if supply is further constrained, rents will rise, yields will increase, and investors will view 3 per cent extra stamp duty as insignificant.
Opportunities Abound For Investor’s Who Act Quickly
Since the stamp duty levy will not take effect until 1st April, it is likely we will see a rush of investors buying before then. Anyone who has been considering buying or selling an investment property must see this change as an opportunity to act quickly to complete their transaction before 1st April. Sales of leasehold properties can take an average of 12 to 16 weeks to complete from offer so it is possible, if the process begins now, to complete a transaction in time to save thousands of pounds.
Location, Location, Location
Buying the right property in the right location will be crucial to success, as will correctly calculating rental yields, tax liability and profitability. It is now more important than ever to consult a knowledgeable expert to make the right decisions at every stage. It is imperative to give landlords expert guidance to help them meet the challenges they face and get the most from their investment property or portfolio, now and in the long-term.
If you are unsure of your options or require further information / guidance I will be delighted to assist.
Feel free to contact Adam Kingswood on 0115 926 4500 or firstname.lastname@example.org
You can also follow Adam on Twitter: @AdamKingswood