Company buy-to-lets growing:

A growing number of buy-to-let landlords are making mortgage applications via limited companies, according to the Buy to Let Club. The trend supports other findings that have reported similar patterns in the market in response to the new stamp duty surcharge, as more landlords seek to reduce tax liability, including mortgage interest tax relief cuts to be phased in from 2017.

Still Looking Good:

With the Bank of England cutting interest rates to a new all-time low of 0.25% – with another small cut on the cards, buy-to-let (BTL) properties are once again looking appealing. Lower interest rates will do little to help frustrated first-time buyers get onto the housing ladder. But they will ensure that the income returns offered by BTL investments continue to be relatively attractive. As a result, it is likely investor demand for housing should hold up reasonably well.

Buy-to-let yields:

Currently, the buy-to-let market is facing a major headwind in the form of reduced mortgage interest tax relief, which will begin to be phased in from April 2017. This will mean that you cannot offset your mortgage interest before calculating your tax and will eventually have to pay tax on your whole rental income, rather than your final profit. From April 2016, buy-to-let investors must also pay a 3% stamp duty surcharge on their property purchase.

Rents Remain Strong:

Average UK rents continued to rise during July, hitting £781 per month, and building on the consistent increases seen during the first half of the year, according to the Rental Index. The index revealed that rents agreed on new tenancies across the UK (excluding London) over the three months to the end of July were up by 2.34%, compared to the same period in 2015. In London and the surrounding areas rents were 4% higher.

+44 (0)207 183 3237

Company buy-to-lets growing:

Still Looking Good:

Buy-to-let yields:

Rents Remain Strong:

More Articles ...