This year will be a fascinating one for the UK’s property market. With so much happening – from Brexit to tax relief changes – there is a lot for investors to pay attention to.
Experience Invest has released a new 2017 UK Buy-to-Let Guide to highlight some of the most important changes including Stamp Duty and mortgage tax relief changes that landlords and investors should expect.
Click here to download your 2017 UK Buy-to-Let Guide…
Stamp Duty and tax relief on mortgage interest
Analysts expect Stamp Duty to have a major impact on the property market into 2017. With increases to the amount paid for a second home introduced in April 2016, buy-to-let investors have been significantly affected.
Before the increases were brought in, transactions saw a huge rise, with investors trying to beat the higher charges. Data from HM Revenue and Customs shows that in March 2016, 162,000 properties were sold. This was a rise of 77 per cent from the same month the previous year.
It is expected that buy-to-let investors will be making fewer purchases in 2017, the result of Stamp Duty rises and tougher affordability checks for mortgages as well as changes to tax relief on mortgage interest.
However, when considering the alternatives for investors, buy-to-let can still offer good returns, so it is unlikely that this year will see a stop to most buy-to-let purchases.
The price of property in 2017 is expected to rise, but by how much remains to be seen. Analysts have different opinions, with some saying growth will slow and others expecting to see significant rises.
In December 2016, the Royal Institution of Chartered Surveyors (RICS) forecast that growth would slow to three per cent. The organisation added that East Anglia, the North West and West Midlands are likely to see rises higher than the national average in 2017. It predicted that prices in Central London will stabilise after recent declines, supported by the weaker exchange rate encouraging foreign buyers.
The average house price across the country is currently £218,255, according to the Land Registry. How much this figure will rise to by the end of 2017 is something all investors will be focused on.
Prime minister Theresa May has triggered Article 50, which will officially begin the process of leaving the EU. Negotiations between European leaders are expected to take a minimum of two years, which could lead to uncertainty in the property market.
However, it was thought that the market would fare badly after the Brexit vote was cast by the public in June 2016. This didn’t happen, with property prices rising consistently. In major cities, house price growth has risen significantly in the last year.
Manchester has performed particularly well, seeing increases of 8.8 per cent in the year to February 2017.
2017 UK Buy-to-Let Guide
The UK’s residential buy-to-let market has experienced a shakeup in recent years. With property prices, construction and housing shortages making the headlines on a daily basis, this guide has been created to provide landlords and investors with an overview of what is happening now.
From hot topics including Brexit, buy-to-let tax changes and the rise of alternative asset classes, this 2017 UK Buy-to-Let Guide will provide key information, industry insights and expert analysis of the sector. Click here to access your guide online…