The 2017/18 tax year is upon us. What makes this tax year particularly significant for property investors is the raft of new tax measures concerning residential landlords. From April 6, more than of half of buy-to-let landlords will be affected by new limits to tax relief on mortgage interest and loan affordability requirements. Over the next four years, the Government will phase out higher rate tax relief on mortgage interest for buy-to-let, capping the maximum at 20%.
Buy-to-let investors will continue to play a critical role in catalysing growth within the UK property market, positively propelling momentum inline with the national housing supply. To that end, it is vital for the Government to recognise the positive influence of investors as a source of dynamism across all regions of the United Kingdom.
In a year of momentous transition for the British economy, investors have a tremendous opportunity to consolidate and expand their property portfolio through buy-to-let and commercial real estate investments. Fuelled by relentless investor demand for real estate, the total value of UK housing currently amounts to £6.79 trillion – 3.65 times the size of the British economy. Having grown by £1.5 trillion in the past three years alone, 2017 is set to be another defining year for British real estate. As revealed in our Property Heatmap, Britain’s diverse property market ensures a nationwide spectrum of opportunities leveraged by the buoyant demand of investors not only around the epicentre of London but equally expanding into regional cities and home counties.
As Britain navigates the Brexit negotiation period, it is important for investors to make timely investment decisions that capitalise on the opportunities arising from our transition out of the EU. Looking to the coming 12 months, alternative finance solutions such as bridging can open investors to these new opportunities, supporting an investment strategy that takes advantage of Britain’s rapidly evolving property market.