What Have The Recent Tax Hikes Cost The Average Landlord?

At the beginning of the tax year of 2016-17 then Chancellor of the Exchequer George Osborne implemented a 3% hike in stamp duty on houses which are not main residences. A tax mainly effecting landlords which has reportedly raked in over £1.4 Billion, more than double what was expected. Couple this taxation with rising mortgage rates as well as new restrictions on the interest tax relief on them, this is bad news for the net profit of those who buy-to-let. Jeff Djevdet, Director of a ‘we buy any house’ company explores what this means for the average landlord. Firstly, let’s take stock of some of the facts and figures that factor in to what this will be costing those who buy-to-let; According to the Office for National Statistics, the cost of the average property sold in 2016 was around £220,000; up around 50% from the low point of the housing price...
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Why Property-Owning Expats Need to Act Soon on UK Tax Hikes

Many UK nationals who are now resident abroad continue to own properties in the UK. For some, it is a way to avoid parting with their UK residence and turn it into a profitable investment while they are not using it. For others, it is simply because UK property remains an attractive asset to have in an investment portfolio. However, a number of tax increases and rule changes are due to hit UK property investment, starting very soon and continuing to roll out over several years. Those who are not resident in the UK are sheltered from some of the changes, but by no means all. In particular, there are two tax hikes coming up soon that will impact expat investors. The first of these is a 3% increase in stamp duty when a new UK property is purchased by somebody who already owns a property in the UK. This...
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Near term price expectations reach 20 month high

RICS have just released their UK Residential Survey for December 2015. Here are the key facts: Buyer demand growth picked up due to the unseasonably mild weather.  This in fact boosted activity. New instructions increased for the first time since January 2015. Price momentum remains firm Strong Growth The survey shows strong price growth to the end of the year, with 50% of respondents reporting that prices have risen. East Anglia and the South East are showing the strongest price growth but all parts of the UK are reported to shown some growth. Buyers enquiries are rising at a faster pace than new instructions, thus giving a demand/supply imbalance. Stamp Duty Increase There is a view that this increased demand was due to buy to let investors trying to complete their transactions before the new tier of stamp duty is introduced in April 2016. New instructions to sell edged up slightly...
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Peter Bolton King FRICS comments on stamp duty thresholds

In this video, RICS Global Property Standards Director, Peter Bolton King, discusses a recent Sunday Times article on whether the changes to Stamp Duty thresholds had removed the ‘bunching’ of transactions.
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Demand Remains Sluggish But Surveyors Expect Boost from Stamp Duty Reform

The December RICS Residential Market Survey shows that buyer enquiries decreased for the sixth consecutive month with the headline national figure masking a very mixed picture across different parts of the UK. While there does not appear to have been any immediate response in demand resulting from the recent changes to the Stamp Duty structure, respondents expect the reforms to result in an increase of around 2%-5% in both Prices and sales volumes over the coming twelve months, according to the December survey.
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Osbornes Surprise Cut to Stamp Duty Throws The UK Housing Market Into Temporary Disarray

It’s not often that an official announcement from the government provokes an immediate flurry of positive activity, but George Osborne’s surprise announcement that ‘unfair and punitive’ tax duties would be “slashed” from midnight on the 3rd of Dec 2014, which came bundled as part of his Autumn statement to the House of Commons, seems to have triggered a storm of purchasing activity for properties below the £937,000 “break even” point that are positively affected by the chancellor’s new policies.
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Stamp Duty cut for 98% of people who pay it!

Great news! Stamp duty will be cut for 98% of people who pay it. This change applies to you if you’re buying a property in the UK for over £125,000.
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Taxman wins fight to close property tax loophole

There was an interesting article in the Telegraph today regarding the taxman closing a property tax stamp duty loophole. This ruling is thought to boost future HMRC revenues by £160m. Heres the full article from The Telegraph. A High Court ruling has sided with the taxman over legislation introduced last year which aims to stop wealthy property buyers avoid paying tens of thousands of pounds in stamp duty. Last June the taxman moved to close a loophole on stamp duty land tax (SDLT) avoidance schemes. These schemes enable property buyers to avoid paying stamp duty, typically on homes worth seven figures. Offshore Companies There are various schemes but the most common involves transferring ownership of a property to an offshore company so that when it comes to be sold the buyer purchases the company as a whole. In doing so stamp duty can be cut from 5pc to 0.5pc on...
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Little impact for Landlords from 2014 Budget

George Osbornes 2014 Budget was announced today announced by the BBC as having "Tax changes to boost pensioners and savers". Mr Osborne said his statement would be “a Budget for building a resilient economy”. However how much of this will impact, either positively or negatively, for landlords and property professionals? Key Housing market points: Housing market is under scrutiny to avoid a bubble. House building is up 23%. Finance being offered to smaller house building firms - £500M fund being opened to small developers. Finance being made available for people to build their own homes. Regeneration of run down council estates. Extending Help to Buy until 2020. New homes to be built in the South East including 15,000 new homes in Ebbsfleet. Stamp duty thresholds not mentioned Stamp duty on homes worth more £500,000 to rise to 15% for those bought by companies, as part of tax avoidance measures Buying...
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Average UK House Price hits the 3% Stamp Duty boundary

The Office for National Statistics (ONS) today released its December 2013 House price Index. In line with the various other HPI releases, the ONS shows that 2013 ended very positively. The increase of the average UK house price to £250,00 also pushes thousands more people into the next band for Stamp Duty at 3%
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The Seven Massive Mistakes Costing Most People Thousands of Pounds in Lost Property Profits

This series of articles has been written by Nikki Pope, Property Investor, Lawyer, Educator. Nikki is running one of her fantastic seminars this Saturday in London.   How to Buy £1.5 Million Property for NO MONEY DOWN! Saturday, January 18, 2014 from 9:30 AM to 4:30 PM So you can hear right from the horses mouth!  Click here to register.  In the meantime enjoy the first of the seven massive mistakes.  Weve all heard about location, location, location when it comes to buying property but what about strategy, strategy, strategy? Property is an excellent way of generating real wealth - but it is a big slow boat and expensive to turn around. Get it right & the numbers are big. The prospects for property profits are excellent. Get it wrong and the numbers are big and in a stagnating or falling housing market it can be very difficult to move on from...
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Gross mortgage lending up 9%

The Council of Mortgage Lenders (CML) has estimated that in March 2013 the gross mortage lending in the UK increased by 9% to £11.6 billion.
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Tips for first time buyers

Buying your first house should be a period of joy and eager anticipation.  The current changing fortunes of the global economy have made this more difficult to achieve for first time buyers, higher deposits are expected as well as perfect credit score ratings; so getting a new mortgage for a first time buyer can prove to be extremely difficult. Budget In order to see if home ownership is a real possibility it’s a good idea to sit down and draw up a budget.  Increasingly, young people are looking to the ‘bank of mum and dad’ in order to overcome the shortfall in their finances to raise the funds for a deposit and many banks and other lenders are aware of this fact. A bad credit loan is available but it is vital that the interest repayments are checked, if the loans are not repaid - this also applies to a...
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Halifax HPI sees normal Tiny Increase

Average house prices increase slightly by 0.5% in the month of May. The average UK house price in May 2012 was £160,941 - 0.7% higher than in December 2011.
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May proves we are in a static market - first ever 0% change

The Rightmove.co.uk HPI for May was released this weeks and clearly shows how we are in the middle of a static market. In May Rightmove.co.uk have seen a straight 0% change, for the first time since they started reporting new seller asking prices.
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Lending for houses boosted by Stamp Duty deadline

Gross mortgage lending in March was an estimated £13.4 billion, according to the Council of Mortgage Lenders. This represents a 30% rise from £10.3 billion in February and a 17% rise from March 2011 (£11.4 billion).
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Gross lending a mixed bag of figures

The CML has reported lending figures for January 2012 to be down by 14% to £10.5 billion since December 2011. However this is actually up by 10% year on year since January 2011. Although seasonal decline is expected the CML have shown that January was actually the sixth month in a row of higher lending. In today’s CML market commentary, CML chief economist Bob Pannell comments: “Housing and mortgage market sentiment has improved a little over recent weeks. “The increase in lending compared to January last year helps support our view that housing and mortgage market activity may be boosted by first-time buyers seeking to complete deals before the stamp duty concession ends in March. “Should inflationary pressures continue to fall back, the squeeze on household finances should ease progressively and help support stronger economic recovery going into the second half of the year. This can only be good news for the...
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First Time Buyers Encouraged by End of Stamp Duty Holiday

The January 2012 RICS Housing Market Survey has seen an increase in the number of first time buyers trying to beat the end of the Stamp Duty Holiday, which is due to expire in March. This is demonstrated by a slight increase in house sales with the average sales per surveyor increasing by +1.8% and average stock levels falling by 5.5%. Yet in comparison to the long run average of 26 average sales, in January the average per Branch was only 15.7. The net price balance however remains unchanged at -16, i.e. 16% more surveyors reported a price fall rather than a price rise. Although still negative it is still the best reading since July 2010. Continuing previous figures the large percentage of surveyors, 82% infact, have see these falls only within the 0 to 2% rang – which would seem to indicate a fairly static/flat market. Regional differences are...
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Property for Sale in Scotland

With asking prices often half that found in Edinburgh, Scotlands capital city, little wonder the bargain houses for sale in Livingston and the other towns and villages in West Lothian and nearby regions have to offer the hard-pressed property buyer are such eye-openers! And Edinburgh is barely a handful of miles away, too, making it an ideal location for the commuter. However, the initial euphoria is apt to disappear fairly quickly given the practicalities involved in acquiring a home in Scotland, especially if the purchaser is a first-time buyer or hails from elsewhere in the UK. The house-buying process has a number of differences when compared to other parts of Great Britain. The good news is there is plenty of help available, not least because whether buying or selling a home, a solicitor is usually involved early on in the process. However, before the would-be first-time buyer even thinks about...
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Just £330 + VAT for Conveyancing (what a bargain)

A 22% discount for conveyancing with Convey With Me, just £330 plus VAT for Just Do Property subscribers.
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