The Threats To Landlords Income
Changes in stamp duty and the gradual change in mortgage interest tax deductions down to the base rate and the removal of the wear and tear allowance at 10% are going to play on landlords minds. After all this is a threat to income.
What Can You Do About These?
There are financial measures that landlords can take to combat these rises. If you have a few properties talk it over with your accountant and I would be happy to put you in the right direction if you lack one. Conversion to holding property in a limited company is one option. These have SDLT implications but again talk it over with an experienced property accountant….
How is Local Hillingdon, Uxbridge Hayes and West Drayton Property Performing?
Land Registry shows a 15.2% increase over the last year for the average property transaction in Hillingdon.
The average property price for us in Uxbridge is £414,300 with a rent of this type of property rent would be circa £1,350pcm. This would make a yield of 3.9%. That’s not an enormous yield and higher yields are typical especially with smaller property. As prices rise the yields on a new buy to let fall as rents go up more slowly than property prices. However rents will increase, but the price that you paid for a property won’t!
Altogether this makes for a return for landlords of 19.1%. I would not expect to repeat an increase of 10% let alone nearly 20%. So this is a pretty fantastic result.
Recent returns like this and future rent increases will go a long way to combating tax changes. Mind you, you don’t get the return until the property is sold where the
Feel free to contact me to discuss Buy To Let and property in the Uxbridge area.
