“Stick or Twist? Is the local housing market becoming a gamble”
Following tax changes and the increasing regulatory burden it is not surprising that a recent survey found nearly 20% of Buy to Let landlords are planning to sell all or part of their portfolio. Although many of them are selling to new investors – entering the market with money from inheritance and business sales – some are preferring to sell with vacant possession reducing the number of properties available to renters. It is important that landlords have a strategy which considers all applicable taxes, the reliefs that are available, as well as where they will invest sale proceeds to achieve an equivalent return.
2017 saw the highest number of First Time Buyer’s in a decade which is encouraging. What we are finding is that they are older than previously, they may already have a family and are looking for 2 and 3 bed properties. This means the deposits needed are high – the average deposit for FTB’s in the South East is an eye-watering £55k. Our advice is to start saving early, make use of the various government schemes, and speak to a mortgage broker well before you want to apply so you can make sure your finances are in order.
Some people are fortunate enough to be able to tap into the bank of Mum and Dad which leads me to my final point: the number of over 65’s is set to increase by 50% by 2034 and there are significant numbers of retirees who would like to downsize and release equity for their children. However, as housing stocks are low around half of these say they are finding nothing suitable. Our advice is to review your criteria and extend your search location rather than staying in a house which has more space than you need and might not suit your needs in the future if you are no longer as mobile or able to drive.
as featured in SO Magazine, October 2018.
Read the article online. pages 105-110
