Earn tax-efficient returns from investing in UK residential property

With Mail Finance trusted partner Bricklane, you can earn bricks and mortar returns from investing in UK residential property, without the cost and hassle of being a landlord.

Bricklane runs two geographically targeted property funds; the Regional Capitals fund, which has properties in Manchester, Leeds and Birmingham, and the London fund, which contains properties in the capital. Both of Bricklane's funds have delivered annualised returns of 6.7%*, through a combination of rental income and capital growth. The Regional Capitals fund returned 8.7% in Year 1 and 6.3% in Year 2. The London fund returned 9.6% in Year 1. Past performance is not a guide to future returns.

From 2019-2023, property specialist JLL forecasts house price growth of 14.8% in London alongside rental growth of 14.2%. House prices in each of the Regional Capitals cities are expected to rise by at least 15.9%, while rental income is expected to grow by at least 16.5%.

Invest in UK residential property from £100

Property has always been a popular investment in Britain, and in recent decades, many have made impressive returns through buy-to-let. According to property inspection company Verismart, a buy-to-let investment in 2009 would have returned 92% today.

Across the country, there are as many as 2.5 million landlords, investing in £1.4 trillion worth of buy-to-let assets. However, buy-to-let is also tax-inefficient; landlords pay 28% tax on capital gains and up to 45% on income. Due to a series of changes to mortgage tax relief, this tax-inefficiency is set to increase over the next few years.

Bricklane is the most tax-efficient way to invest in UK residential property: Investing through an ISA (Type: Stocks & Shares), combined with Bricklane’s REIT (Real Estate Investment Trust) status, means you won't pay tax on any income or gains made on your £20,000 ISA allowance. During the 2017/18 tax year, British people saved £2.9 billion in tax by taking advantage of the Government's ISA scheme. Standard investment accounts are also available.

Investing your money in Bricklane could give you better returns than holding it in cash. At present, Cash ISAs offer average returns of 1.5%, which isn’t even enough to keep up with inflation, which currently stands at 1.8% (Bank of England and the Office for National Statistics, March 2019). So money held in a Cash ISA is decreasing in value over time. Unlike with a Cash ISA, with investing, your capital is at risk and there is no FSCS protection for poor investment performance. The value of your investment may go down as well as up.

Transfer your ISA to Bricklane

You also have the option to transfer existing or current ISAs from other providers to Bricklane. During the sign-up process, you can print, sign and return a form letting Bricklane know the details of the ISA you want to transfer, and they can handle all communication with your existing ISA manager. Investing with Bricklane is easier and less time-consuming than direct buy-tolet ownership, with the added benefits of flexibility in how much you invest and diversification, as your money is automatically spread across all of the properties in the fund, and further properties as they are added. You also have the option to split your investment 50:50 between the London and Regional Capitals fund. Investing with Bricklane enables customers to benefit from extensive property expertise - all investment decisions are overseen by an investment advisory group with over

100 years of combined property experience, who have managed billions of pounds of residential property transactions.

Saving for retirement?

48% of people think property is the best way to save for retirement, but investing in a buy-to-let is increasingly unattractive. In addition to the tax-inefficiency, the cost of buying upfront can be huge and properties are often a hassle to manage.

Instead of choosing to invest in either property or a pension to fund your retirement, Bricklane lets you do both. By investing in property through a SIPP (pension), you won’t pay any tax on property gains or income. You can also benefit from government contributions that boost your investment by up to 45%, alongside potential inheritance tax benefits.

If you’d like more information, you can visit bricklane.com or get in touch with Bricklane’s customer support team on 0203 1111 432 9:30am - 5:30pm, Monday to Friday. You can invest directly through the platform or through your financial adviser.