Posted on: 17th May 2019 in Mortgage & Property UK
Buy-to-Let (BTL) investors in England and Wales make an average of £80,000 selling on their properties – before tax. And in London, the average pre-tax profit on a sold BTL property is a whopping quarter of a million (£248,120). That’s according to figures from top estate agents Hamptons International released this week. So who said Buy-to-Let was bust? The UK BTL sector attracted 36% less new mortgages in 2017 than it did in 2015 – when new landlord mortgages stood at 117.5k. Potential landlords have been put off the BTL sector in the UK because, over recent years, it has been hit by government tax raids. Stamp Duty for landlords was beefed up by 3% in 2016. Lending laws have stiffened up. And most crippling of all has been the change to mortgage tax relief: Consumer watchdogs Which? explain that, if you are a UK landlord, “by April 2020, you won’t be able to deduct any of your mortgage expenses from rental income to reduce your tax bill. Instead, you’ll receive a tax-credit, based on 20% of your mortgage interest payments.” But the new statistics from Hamptons International point to an enduring strength of the BTL – and that is, as Holborn suggested back in January this year, that “one of the key advantages of BTL is exposure to the underlying value of the property asset.” Thisismoney.co.uk confirms that, “while a crackdown on tax relief and higher investment costs may have taken their toll on landlords’ appetite to invest today, rapid house price growth over the past 10 years has left long-term landlords with properties worth far more today than when they bought them.”We have 18 offices across the globe and we manage over $2billion for our 20,000+ clients
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