UK rental property value has increased 6.4 per cent (£82.6 billion) since 2016, reaching a record high of £1.4 trillion.
Despite concerns that buy-to-let investors would be put off by new regulations, an increase in stamp duty, reduced relief on mortgage interest payments, and the fact that they must now carry the cost of new tenant agent fees, the buy-to-let market is booming.
Average rents are however rising more slowly, with tenants now paying an average of £895 per month, up 1.5 per cent from last year, rather than the 2.4 per cent rise seen in 2016.
A spokesperson for the report says: “Landlords are swallowing the unpleasant cocktail of higher taxation and tighter regulation, and this is undermining the expansion of the private rented sector.
“A fundamental shift in the landlord population is now underway, as buy to let moves from being a popular past-time for hundreds of thousands of British amateur landlords, to the preserve of committed long-term investors with experience and expertise.”
At Beavis Morgan, we have extensive experience in advising individuals and businesses on all aspects of the property market. We act for a broad range of property investors and developers who actively need advice on how to best structure their property deals, both to ring-fence and protect their property assets, as well as to minimise the tax arising from their business operations.
We also offer specialist services to identify business opportunities for overseas investors looking to enter the UK property and business market – and we provide a comprehensive range of professional services to help you make the most of your investment in the UK.