Friday News #066 – ‘It’s gone bonkers’

Friday News #066 – 17th July 2020

Keen to make the most of the current climate, the stamp duty holiday and low interest rates, investors are returning to the market recognising the present opportunity.

Where and what you buy remains to be of crucial importance for success. We have some excellent opportunities for those wanting to capitalise on this unique combination of factors.  

Here’s what we’ve seen in the news this week:

‘It’s gone bonkers’: buy-to-let inquiries boom as landlords swoop on stamp duty break: Buy-to-let landlords have swooped into the property market to take advantage of the stamp duty tax giveaway. In a temporary move intended to stimulate the property market in the wake of coronavirus, Chancellor Rishi Sunak last week announced that buyers in England and Northern Ireland would pay no stamp duty on the first £500,000 of their purchases until March 31. Landlords and others purchasing a second home still pay 3pc of the entire value of the property in additional tax, but the tax break means that their bills could fall by as much as half. Read more from The Telegraph.

Average house price in the UK has almost trebled in the past 20 years: Discerning investors who look at longer-term trends rather than focusing on monthly movements will find that UK house prices have almost tripled over the past 20 years. Research shows that in 1999 the average house price in the UK was £77,961. Now that figure is £230,735. Read more.

A quarter of BTL landlords plan to add to portfolios: One in four buy-to-let landlords are planning to expand their portfolio this year, according to new research. With buy-to-let continuing to deliver solid returns that outstrip many other asset classes, a fresh report from Rightmove shows that 25% of buy-to-let landlords are planning to add to their portfolio this year. Read more.

Growth in prices ‘highlight the resilience of the UK rental market’: Private rental prices paid by tenants in the UK increased by 1.5% in the 12 months to June 2020, the latest figures from the Office for National Statistics (ONS) show. Between January 2015 and June 2020, private rental prices in the UK increased by 9.3%, the figures reveal. Read more.

Is a holiday let better than a buy to let? Whilst traditional buy-to-let properties remain to be a very appealing investment opportunity, investors are wise to consider all types of property investment to decide which will work best for their portfolio. In recent years there has been a growing demand for holidays in the UK, or ‘staycations’ as they’re often called; a UK holiday let is an interesting prospect for investors. Read our latest post.