Tax is an increasingly important element of investing and letting property and there are four tax changes taking effect in 2018 that could affect landlords. While some will impact on your profits this tax year, some will have an effect into the future, so it’s important that you understand what the changes are and plan ahead to ensure your investment delivers the returns you expect and you don’t get any nasty surprises when your tax bills arrive.
The number of buy-to-let mortgages products available on the market in June 2019 was the highest in over ten years at 2,396, according to a new report from Moneyfacts. That represents a 21% increase in the number of available BTL mortgage products in the year to June, compared with the same period in 2018.
I thought that a reduction in interest rates was bound to happen last month and then, having heard some economists suggest that reducing interest rates might not do much for the economy, I thought they’d be on hold this month. Clearly I’m not very good at financial forecasts, as here we are now in August with a fall of 0.25%!
The fees associated with buy-to-let mortgages can be intimidating, but understanding them is important for any landlord taking out a loan. Whether you are considering your first buy-to-let purchase or managing a portfolio, fees should be figured into your budgeting at every stage:
Since the Housing Act 2004 came into force in 2006, new rules and regulations have flooded into the lettings industry on a regular basis. In 2018 alone, we have seen four new pieces of lettings legislation introduced in England:
British banking brand, Halifax, has announced good news for UK homeowners as it released improved house price figures for January.
“Osborne drops tax bombshell that will wipe out bulk of buy-to-let profits”, The Guardian, 11th July 2015
The Guardian, like the Financial Times and many other media outlets baulked at George Osborne’s somewhat hidden tax relief changes as announced in the emergency Summer Budget last July. The talk has been of a ‘rental Armageddon’ and the decline of rental properties in the UK.
However you make your money, the chancellor demands his dues, and being a landlord is no exception. Income earned from a rental property is like income earned any other way, and as such, you need to pay tax on it.
In years gone by, the typical mortgage period that many home buyers agreed, was to make their repayments over 25-years. Now, however, with average house prices so high compared with earnings and such good mortgage interest rate deals on offer – not to mention a dearth of interest-only mortgages – more people are choosing to borrow for a longer term to buy the home they want.
The month of January is closely associated with post-Christmas sales, as shops attempt to rid themselves of their stock from the previous year and make way for fresh trends and items for the new year. However, it appears that in 2019, some mortgage lenders are joining the January sale mindset and shaving a little from some of their mortgage products.
News on the UK’s housing market during October has been both mixed and interesting. While price growth remains subdued in many places, new areas are emerging as current hotspots. And, as first-time buyer purchases are on the rise, the London market remains muted.
Since the UK voted to exit the European Union in 2016, ‘Brexit’ has been held accountable as the root cause for a multitude of problems. Of course, it’s absolutely true that it has caused uncertainty relating to many issues – how will it affect business rules, UK firms’ access to Europe, alter costs associated with trade between the UK, Europe and the rest of the world – the list goes on.
The UK’s housing tenure choice is increasingly moving towards a greater reliance on the private rental sector (PRS), despite changes to the tax rules which have seen fewer new BTL landlords enter the market and more existing ones sell some of their portfolio. And according to recent research from international property management firm Hampton International, there could be the need for some 6 million rental homes in the private sector, by 2025.
Recent news has highlighted a dearth of private sector BTL landlords across the UK right now. Not only are existing portfolio landlords selling up in the face of a tougher tax regime for the sector, potential new landlords are opting for easier options, that are less penalised by the Government.
The latest official data on house prices, as calculated by the Office for National Statistics, (ONS) shows the pace of house price growth accelerated in December, pushing the average house price higher, yet again.
The ONS house price index reported the average house price in December 2017, was 5.2% higher than the same period in 2016. That increase was faster than the 5% annual rise reported in November.
The UK property market had a few ups and down in November and the news relating to that made for interesting reading. Some reports said UK prices rose, while others said they fell, mortgage lending and rates were also in focus following the Bank of England’s rate hike.
With interest rates still at rock-bottom, a buy-to-let property remains one of the best ways to make your savings work for you. However, landlords are coming under increasing pressure as new regulations remove tax relief; it’s more important than ever to get the most out of your rental property. Here are a few key factors that affect the price of your buy to let home.
As buy-to-let continues its rise to popularity, with almost two million landlords in the UK, numerous questions surround buy-to-let mortgages and how they work; below, we explore some of the key features of a buy-to-let mortgage, including how to attain one and what to look out for applying.