At our property investment seminars in London, we often focus on the current market, and the latest legislation affecting landlords. Whilst this information isn’t as exciting as choosing your next buy-to-let property for sale, it’s an important aspect of successful UK property investment – and as such, it’s vital to swot up on the latest news and trends.
If you’re thinking about investing in UK property and want to know what to expect for 2018, here’s a quick round-up to help you.
Property Seminar Info: 2018 Landlord Round-Up
- Mortgage interest tax relief. For some time now, the government has been reducing the amount of mortgage interest that landlords can subtract when working out their end of year tax returns. As of April 2018, you’ll only be able to offset 50% of your mortgage interest (a drop from 75%). This figure is set to keep falling until it reaches 0%, which is estimated to be in 2020. However, landlords will then benefit from a tax credit of 20% the mortgage interest.
- Crossrail zones still look profitable. Last year, several locations in and around London increased sharply in value, thanks to the opening of several Crossrail stations. This is likely to continue happening in 2018 and beyond, so it’s well worth checking out places along the Crossrail route. Nobody is quite sure what’s happening with the proposed Crossrail 2 line yet – our recommendation is to follow the latest news and invest quickly once the new route gets the official go-ahead.
- Rogue landlords. It pays to act ethically as a landlord, especially from April onwards! Parliament approved the launch of a rogue landlord database, detailing all landlords who have been banned from letting out properties. It’s not known if this information will be readily available or not yet – but we recommend taking great care to ensure you’re not on this list.
- The northern cities are ripe for investment. Looking for strong rental yields and good capital growth? The northern cities, such as Liverpool, Sheffield and Manchester, are still the best places to find great property investment opportunities. Certain postcodes in Sheffield offer the highest rental yields in the country, and Liverpool / Manchester continue to be strong performers.
- Energy performance certificates. Energy performance certificates have been around for a while now. However, from April, your new buy-to-let property will have to be rated E or above. By 2020, this will include all your existing properties for rent too – so you’ll need to check that they all comply, or risk getting fined up to £5,000.
- Great property investment opportunities on Kentish coast. Landlords have been paying close attention to the Kent coastal towns recently, as they’re becoming increasingly popular with tenants looking for a slice of the good life, while remaining close to London. Our advice? Check out Ramsgate. Prices are still affordable, but current regeneration means they’re likely to climb in the future.
The Buy2Let Shop
If you’re serious about investing in UK property, come along to one of our free property seminars! We cover a wide range of topics; from investment advice, to handy tips for landlords. To find out more, visit The Buy2Let Shop website today.