How will the Budget affect buy-to-let investors?
The Chancellor will reveal the UK’s plans for the fiscal year in the Autumn Budget on 22nd November and some buy-to-let investors will be keen to see if there will be anything new that affects them.
In London, many are calling on the Chancellor to review stamp duty as a means to revive the London property market. With the average price of a home in the capital at £471,761, and rates of stamp duty at 12% for properties over £1.5 million, all but the very wealthiest of investors approach investment in London as a serious option and portfolio building is not an option at all. Whilst in the North, property prices have sped up in cities like Manchester, data from the Office for National Statistics (ONS) shows. This is working well for buy-to-let investors who are still finding affordable investment property with good capital growth.
ERE would welcome an acknowledgement from the government of the role that buy-to-let investors play in the housing market. 2016 and 2017 saw changes to the rate of Stamp Duty Land Tax increase and changes to the amount of mortgage interest an investor could deduct was reduced. Good news for investors is that interest rate rises don’t appear to have had a big impact on the cost of buy-to-let mortgages yet, according to fresh data from Mortgage Brain. The picture for expat investors especially is broadly positive as the currency rates favour their purchases.
Experts say Britain should be constructing up to 300,000 homes each year to meet the increasing demand and undersupply that much of the UK’s key growing cities like Manchester has seen. With a growing rental market, investors who decide to expand their property portfolio with good-quality homes for tenants can be assured that the demand is there.
Let’s see what happens.
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