In recent years, Buy-To-Let Investments have taken a hit due to the UK Government’s tax changes. Cuts to the mortgage interest tax relief and the implementation of the second home stamp duty has put many off investing in Buy-To-Let. However, data from UK finance has found that Buy-To-Let borrowing for house purchases among property investors was up 11 percent in July. It’s clear savvy investors are continuing to purchase new properties and take advantage of the decrease in demand from other investors.
This week, it has been widely reported that Buy-To-Let Landlords are expected to be rewarded in the Autumn Budget for offering longer-term tenancies. In April, the Conservative Party hinted that details of the rewards for landlords will be released in the Budget on November 22nd.
Perks for offering longer-term tenancies are likely to include clawing back tax relief which is currently being withdrawn from thousands of landlords and easier access to justice with the introduction of a new housing court.
David Cox, Chief Executive of ARLA Propertymark, the trade body for the lettings industry believes that “combining the housing court with tax incentives such as repealing the punitive restrictions on mortgage interest relief should provide landlords with both confidence in the legal system and financial incentives to offer longer-term tenancies.”
Additionally, in more good news for prospective and current landlords, latest figures suggest that the average rent across Britain has increased closer to £1,000 per month, rising by 2.1 per in September (HomeLet Rental Index, 2017). Therefore, whilst Landlords are experiencing higher costs which the Government is likely to reduce imminently, they are also experiencing higher rents which will offset any cost increases.
With the Government likely to make a tax relief U-turn, Edifice Invest believes now is the perfect time to invest in Buy-To-Let especially as rents are increasing and will likely continue to do so as demand outstrips supply. If you wish to discuss a Buy-To-Let Property investment, then fill out our contact form below and one of our advisors will get back to you.