UK property market is facing an interesting year trying to determine its way under the influence of many internal and global factors
The Guardian has reported that the UK housing market had got off to subdued start in 2018 with London sales slowing down considerably.
However, despite a slow house price growth in the capital, the London market is still very much the leader being more than twice as valuable as the combined worth of property assets in the next nine largest cities and towns in the UK: Birmingham, Manchester, Leeds, Bristol, Reading, Edinburgh, Nottingham, Sheffield and Glasgow.
It also looks like London sets to maintain its position in a global property investment market, Brexit or no Brexit, especially in commercial property. The Deutsche Bank signed a new lease for its London headquarters last August despite the rumours of banking jobs exodus. Snapchat, Facebook and Apple have all recently signed office leases.
Are We Seeing the End to the Everyday Landlord?
Buy-to-let sector is bound to experience further changes and we might be seeing the beginning of quite a profound renting market reform.
Buy-to-let lending has been down since April 2016, when higher stamp duty charges on second properties came into effect. Buy-to-let landlords have also been hit with additional tax charges which reduced the amount of mortgage interest they can claim back from the taxman.
As a consequence, buy-to-let properties will become much less profitable attracting Stamp Duty Land Tax’s +3 per cent charges.
The downward trend is expected to continue in 2018.
This might bring about a whole new concept of residential property rentals in the UK.
In short, 2018 might be a very interesting year in property investment: investors are carefully watching changes in taxation in regard of property purchase, interest and currency rates, housing policy and economic growth to try to gauge possible opportunities and determine strategies.
Read the full story in director.co.uk