In spite of the Chancellor coming down hard on buy-to-let landlords in his Summer Budget, the lettings market still offers healthy profits to investors, as per a report by PWC.
The new research found that there is a steady supply of people looking for homes and the demand is only expected to rise. It forecasted that a quarter of all homes across the UK will be lived in by tenants rather than owner-occupiers over the next 5 years.
Estate agency Leaders’ lettings director Emma Wells said: “Tenant demand remains incredibly high and is expected to continue to rise over the years to come. Void periods are at a 13-year low with the average rental property being occupied for almost 50 weeks each year. Just 6% of Leaders’ rental properties have been the subject of a void period in the last year, meaning the vast majority of our landlords have enjoyed rental income for at least 12 consecutive months.”
However, new tax relief reforms announced earlier this year have left an impact with some lenders now offering limited company buy-to-let finance products, as these offer a new tax-efficient alternative to invest in property.
The new tax relief reforms won’t come into effect until 2017. However, here are the changes in brief:
If are a landlord and would like to discuss the tax aspects of buying, selling and letting property, we would be pleased to have a ‘no-commitment’ informal chat around your circumstances and provide a free initial consultation.