The Daily Mail has this week announced that London houses prices are up because of the upcoming general election but is a push up in-house prices really about this when the campaign has only been up and running for 3 weeks? There have been 37 changes directly affecting landlords since 2014, all of these changes and more impact on house prices and the real question in property is what will the focus be for a new government when it comes to property investors? everyone is waiting to find out. Progressive Property founded by Mark Homer and Rob Moore is based in Peterborough - a location where a thousand properties are being built every year but to meet the current demand this would have to be doubled. Right to buy has reduced the housing stock and people have talked about ending it but people being able to buy their own council home can give them the first rung on the property purchase ladder so on its own it is neither the problem nor the solution.
Current landlords are not interested in investing and new landlords are put off by all the changes and If you only have one or two properties you can’t incorporate without paying a lot of capital gains and stamp duty.
So, what is the solution? and where does this end? - It will continue until the government gets a grip on housing, the simple fact is the government has failed to build new council homes and now they are trying to penalise developers and landlords who have property and are renting it out through tax changes.
They have a duty to provide social housing and they haven’t, the easy target is landlords
and instead of looking to find a positive solution to a problem they look to curb the people who are making a difference through property taxes.
The General election is imminent, Boris Johnson and Jeremy Corbyn are on the road and soon we will know if the `government will be Conservative or Labour but what will be different? Mark and Shaz Nawaz talk about the big headlines this week and what the next government needs to do to address the challenges facing property.
KEY TAKEAWAYS
Over repeated quarters the house prices in London and other comparable areas have continuously dropped.
Prices have reached the bottom of the predicted curve and are now slowly beginning to rise with house prices up by around 1% in London over the last year.
It’s vital that you read widely to ensure your perspective is informed and you have a balanced understanding of the information.
Buy to let Acquisitions
This focuses on lending to buy to let landlords but it isn’t viable for people to invest in buy to let anymore unless they are sophisticated investors using a limited company.
If you only have one or two properties you can’t incorporate without paying a lot of capital gains and stamp duty.
There are now more first-time buyers buying but they’ve dramatically reduced the number of properties in the buy to let sector.
The Government intention was via section 24 and a rise in stamp duty to level the playing field for first-time buyers.
They should be incentivising people to work with them and they’ve achieved the opposite.
What the government does and how it behaves affects everything.
Overseas property buyers facing UK stamp duty increase
The conservatives say they are going to add a 3% surcharge onto purchases of UK properties by foreign property buyers in addition to the 3% surcharge that exists for investment purchases and second homeowners.
It’s an extra way of bringing in tax and because the government hasn’t built enough social houses and is penalising certain investors to bring in more tax .
A drop in the ocean for tax revenue but politically popular – those nasty people from abroad buying all our houses
NEWS STORY LINKS
London House Prices are Bolstered by a DROP in the number of homes for Sale Ahead of the Election article Daily Mail
Buy-to-let acquisitions drop 11% as tax and regulatory changes ‘hit the sector’ article Landlord Today
Overseas property buyers face UK stamp duty increase article Financial Times
CONTACT METHOD
MARK HOMER
Markhomer@progressiveproperty.co.uk
Mark My Words Podcast
SHAZ NAWAZ
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