Buckinghamshire Advertiser - - BUCKS PROPERTY -

S a land­lord, you could be for­given for feel­ing a lit­tle sorry for your­self of late. The New Year has kicked off with more strin­gent mort­gage lend­ing rules and the phas­ing out of mort­gage tax relief be­gins in April. Not for­get­ting the 145 pieces of leg­is­la­tion land­lords now have to com­ply with.

Still think be­ing a land­lord is a good idea? Ro­mans thinks so.And so do land­lords.The pro­por­tion of land­lords seek­ing to ex­pand their port­fo­lio has risen to 45%, up from 41% in May 2016, ac­cord­ing to re­search con­ducted by Mort­gages for Busi­ness, sug­gest­ing land­lords are will­ing to ab­sorb the in­creased costs and re­main in the in­vest­ment market.

True, the let­tings land­scape has changed dra­mat­i­cally of late, but there are still so many pos­i­tives. Prop­erty is still the most lu­cra­tive in­vest­ment ve­hi­cle when com­pared to other com­modi­ties such as stocks and shares and gold – just look at the cap­i­tal ap­pre­ci­a­tion of prop­erty across the South East in the last few years.

Yields re­main strong as rents con­tinue to in­crease, up 3.9% in Eng­land in 2016 push­ing the av­er­age rent to £892 per month in De­cem­ber ac­cord­ing to Homelet. In fact, av­er­age rental val­ues have in­creased in 11 out of 12 re­gions in the UK, com­pared to the same pe­riod last year. Right­move pre­dicts this trend to con­tinue into 2017 with a fur­ther 4% rise across the coun­try (out­side Lon­don).

Yes, some land­lords with large bor­row­ings will strug­gle with the tighter lend­ing rules, as lenders have to take into ac­count a land­lord’s costs and ex­penses as well as rental in­come when as­sess­ing their buy-to-let ap­pli­ca­tion.

And 60% of in­vestors say they will be af­fected by the tax changes be­ing phased in from April, lim­it­ing the amount of tax relief on mort­gage pay­ments land­lords can claim.

The so­lu­tion to these chal­lenges in 2017? Get good ad­vice from ex­pert in­dus­try pro­fes­sion­als you can trust.

Richard Frost, let­tings man­ager ex­plained:“Land­lords need to un­der­stand how all these changes af­fect them, and seek ad­vice to make the right de­ci­sions for their in­di­vid­ual cir­cum­stances.This in­cludes mort­gage and tax ad­vice from pro­fes­sion­als and in­vest­ment ad­vice from lo­cal prop­erty ex­perts.

“All the pro­jec­tions for rental growth and cap­i­tal ap­pre­ci­a­tion over the next 5-10 years make prop­erty a very at­trac­tive as­set class,” added Richard.

For ex­pert let­tings ad­vice con­tact your lo­cal branch on 01344 985 870.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.