Real estate investment in England “buy to let” will be even more effective due to the growth of the British sector of the rental

The reduction by the UK government benefits for homeowners, seems to have begun to have an impact on the rental market and many homeowners are considering selling their property.

Changes in taxation, which is announced as part of the so-called “Summer of the Budget”, take serious concern to many investors “Buy to let”. According to research conducted by estate Agency Your Move and Reeds Rains, 9% of landlords believe that now is a good time to sell your property before the introduction of tax reform, and that reform of tax legislation is a key factor in this decision among others.

Noticeable decrease in enthusiasm from buyers. Only 31% of buyers believe now is a good time to invest in real estate and 44% of buyers believe that now is the time to invest in real estate with the aim of renting it out is much harder than it was 6 months ago.

Investors quickly counted their losses and seeing that investments in the sector of “buy to let” becomes less profitable, they began to leave this sector of real estate. Many homeowners do not quite understand the essence of future changes. And to avoid further problems, prefer to put your property for sale now.

If now one in every ten homeowner will put up for sale your property, then the rental market will have fewer offers, this despite the fact that the demand for rental housing is growing every month. In such circumstances, the increase in rent is inevitable.

In spite of the current imbalance between supply and demand in the rental market of residential property, only a small part homeowner clear idea of the picture. For example, only 16% of the surveyed homeowners realize that the demand for rent will increase and by 2025, a quarter of Britons will live in rented accommodation. Only 22% of landlords plan to increase their investment portfolio over the next 12 months.

The survey also showed that landlords, generally, are not looking for increase in their investment income, and the main problem they have to solve, is the problem to find someone who will monitor and maintain their property also to find a decent tenant who will keep the property in excellent condition. Advice from Adrian Gill, Director of Your Move and Reeds Rains, don’t rush to sell your property since in the future it will bring a good and stable income.

® Alice Morgan. G. 17.11.2015

KNIGHTSBRIDGE, LONDON SW1X – £8,750,000

MONTPELIER MEWS, KNIGHTSBRIDGE SW7 – £9,500,000

THE BELVEDERE, CHELSEA HARBOUR SW10

HANS PLACE, KNIGHTSBRIDGE SW1X – £ 14500000

BERNERS STREET, FITZROVIA W1T – £1,995,000

BROMPTON ROAD, KNIGHTSBRIDGE SW3- £1950000

FITZJAMES AVENUE, WEST KENSINGTON W14 – £ 2,300,000

IMPERIAL CRESCENT, IMPERIAL WHARF SW6 – £ 4,550,000

THE KNIGHTSBRIDGE, LONDON SW7 – £ 2,950,000

HANS COURT, HANS ROAD SW3 – £ 13,950,000