With savers receiving poor returns from banks and building societies, thousands of people unsurprisingly continue to turn to residential property as a means of supplementing their income. Supported by low mortgage borrowing rates, solid demand from tenants and stable yields, buy-to-let is still the investment of choice.
Despite a challenging few years for the buy-to-let market, characterised by tax and regulatory changes, investment in buy-to-let continues to outperform most major asset classes, as Britain’s rented sector continues to expand, with a sixth of the population – some 10 million people – now living in accommodation rented from private landlords.
A new survey carried out by Perrys Chartered Accountants has found that Londoners are mostly positive about the possibilities of buy-to-let as an investment with four in five - 82% - believing it would be a good investment.
Brexit and increased tax and stamp duty rates remain barriers deterring some investors, which partly explains why 42% of those surveyed cited a reduction in stamp duty and other relevant taxes as their biggest desire when it comes to investing in buy-to-let property.
Georgina Wakeman, Lettings Director at Davis Tate, commented: “Buy-to-let is still a solid long term investment despite what current market indications and the drop off in purchases might suggest. It’s interesting that the younger generation still sees it as a way to plan financially for the future. However, there are many things to consider before jumping in, including stamp duty charges, how income tax might be affected and what the return on the investment is likely to be.”
"Investing in a property is a long term plan rather than a quick fix to financial freedom so it’s important to gather as much information as possible and speak to a professional tax specialist and mortgage advisor before making a commitment.”
If you would like expert lettings advice, contact your local Davis Tate branch for more information, and we would be more than happy to provide a free, no obligation lettings valuation - click here to arrange this now.