4 April 2016
4 April 2016,

George Osborne’s proposed stamp duty increases for buy-to-let houses came into action this month – leaving many investors concerned about the future of their property portfolio. With tax rising by 3%, this means considerably more expenditure against every house purchase. For example, a £200,000 home would now cost £6,000 more – an alarming figure that could leave landlords tempted to place their money in other forms of investment.

Property Investment Opportunities and Rental Demand

However, with the rental market remaining so buoyant, specialists are claiming that there are still plenty of property investment opportunities on offer; it’s just a matter of identifying savvy ways to invest in property in the UK.

Indeed, a comprehensive report from economists at PricewaterhouseCoopers (PwC) predicts that, by 2025, 50% of people aged between 20-39 will be renting. With demand continuing to rise, it’s the perfect market for landlords to make a good profit – irrespective of the stamp duty hike.

Beating the Stamp Duty Hike

Research carried out by Humberts identifies that, in order to overcome the obstacle of stamp duty increases, investors must explore locations where properties are set to enjoy considerable growth in the future. The capital growth of the house should then, in theory, offset the additional money paid in tax.

David Butler –  a spokesperson for ResiAnalytics, explains how this works in practice. For example, in the Cotswolds (one of the country’s most desirable locations), average property prices were £412,802. This price was 4.3% more than the previous year. It’s also higher than average popular second-home areas. The Cotswolds is predicted to remain popular, and as a result, it’s anticipated that house prices will continue to rise above the national average. This should counterbalance any financial losses made from paying more tax.

Where Should You Be Looking for Buy-to-Let Property for Sale?

When identifying property investment opportunities, think about the following:

  • Have house prices risen in recent years – ideally above the national average? Do they look set to continue to rise in the future, and if so, by how much?
  • Do people want to live in the area? Is rental demand high, and if so, what is the average rental yield? Does the available rental revenue offer good returns against your initial investment?
  • Future plans. Are there any plans to regenerate the area or improve transport links? Are any multinational companies moving nearby (bringing employees with them)? Are any local universities expanding and accepting more students? Conversely, are there any future plans that could adversely impact the future of the location and drive demand down?

Property Investment in the UK with The Buy2Let Shop

If you’re looking for buy-to-let property for sale and want to develop your portfolio, talk to The Buy2Let Shop today. We’re a team of expert property investment agents in London, and we’ve got a wide range of excellent investment houses and apartments on our books – most of which are not available on the general market.

We also offer help with buying a house at auction, and host regular property seminars to boost your industry knowledge and assist with future investments. To find out more, visit The Buy2Let Shop website today.

One response on “Investing in Property in the UK – Outsmarting the Stamp Duty Hike

  1. cell fernandes says:

    I am looking to buy a 4bed house within 30 mile radius of the Lister hospital

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