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The reported uncertainty surrounding the property market that has been dominating the news is having little impact on our market; buyers and tenants are out in force and committing. We are averaging over 25,000 viewing appointments a month for active tenants and buyers across London, proving that people are moving forward with their property plans despite ongoing political uncertainty and legislative changes.
So far in 2017, we have reported our best ever week for sales across the company. Property transaction numbers are high across the capital as homeowners look to cash in on their investment and new buyers look to secure property in an active and vibrant market. In terms of the buy-to-let market, landlord investors remain undeterred in the face of Government changes on loan interest and the introduction of higher Stamp Duty in April 2016. The medium-to-long-term view they are taking means that the investment market remains strong. Investors recognise that London is considered to be a safe bet in terms of property as an investment - regulation remains a light touch and the city continues to attract new investment from around the world. Dexters expects property prices to continue rising steadily through the year and that they will double by 2030.
Increasing numbers of people are choosing to rent so that they don't have the responsibilities of owning a property and can live where they choose, hassle free and flexibly. As suspected, London tenants are increasingly opting to stay put for longer; our average tenancy is 18 months, but this year we’ve already seen an increasing number of three-year rental agreements; currently 12% of our tenancies are being let out on three-year leases.
Mortgage interest tax relief is set to be gradually cut back over the next few years, so by 2020/21 the maximum tax relief a landlord will receive is 20%. Landlords have to pay income tax on their rent regardless of their employment status. They will need to complete a tax return annually, declaring the income they have received over the year.
It’s worth remembering that letting and management fees are tax deductible and that we are in a fantastic position to find you the best tenants and keep the property full (arrears and voids are potentially a much bigger issue than tax or anything else). The National Landlords Association found that 37% of landlords had arrears in the past year – at Dexters, it is a fraction of 1%.
If you have any questions about these impending changes, please do not hesitate to contact us. Additionally, Dexters has negotiated a fees-free re-mortgage offer with Coreco for you. Click here to find out more.
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