Ten Reasons Not To Buy New Build

April 17, 2016

If you’re a first time landlord or an experienced investor, think long and hard before adding new build properties to your portfolio.  Here are some of the pitfalls:
1. Developers Premium
When you buy a new build property, a developer is making a substantial profit.  They will only have embarked on the project if they knew they could make a decent return and they will have set the price point accordingly.  You are paying for all of the marketing, the trouble that they have gone to building, designing and fitting out the property and developers [...]

A Landlord’s Guide To The Budget

March 19, 2016

The dust has settled on George Osborne’s budget, well at least most of it, the political fallout of Ian Duncan-Smith’s resignation, I suspect, has only just begun.   The chancellor says his government wants to “tax the things it wants to reduce, not the things it wants to encourage.”  Having increased stamp duty on purchases by landlords and reduced Capital Gains Tax for everybody except landlords, his position on those of us providing 19% of the UK’s housing stock is clear – we are not welcome.  Here’s a summary of all the changes and [...]

To Buy Or Not To Buy

March 16, 2016

Predictably the first quarter of this year is seeing a flurry of sales to landlords and investors before the 3% stamp duty surcharge comes into effect on 1 April.  Buy To let lending was up 22% year on year for the month of January 2016. Unless you’re a cash buyer with an expensive solicitor, you’ve left it too late now to complete before the deadline, realistically offers to buy had to be accepted by the end of January at the latest.  The big question now is what will happen to the market after [...]

Trump, Brexit & Little England

February 14, 2016

The world is looking a little gloomy to me at the moment.  Yesterday the Russian Prime Minister, Demitry Medvedev’s intransigence over the faltering Syrian ceasefire, left him warning that the world was “slipping into a new cold war.”  So we look to the USA to provide some kind of leadership and what do we see:  A real possibility of Donald Trump being elected as the next president.  It’s true there is a long way to go between now and the US elections in November, but I am struck by how Hilary Clinton is [...]

Has The Private Rented Sector Peaked?

February 11, 2016

We had a great debate at an NLA meeting in Tower Hamlets in the heart of London’s East End last Thursday, reflecting on the recent tax changes and their broader impact on the Private Rented Sector.  My hypothesis is that the 3% SDLT surcharge which the chancellor is levying on landlords from 1 April 2016 and the restrictions on mortgage interest tax relief from 2017 will deter future investment and prompt some landlords to sell.  Richard Lambert, CEO of the NLA said that NLA research showed that landlords’ confidence in their business [...]