A significant part of the owners of property in the UK would like to purchase a second home within the next 10 years, however, many of those who want to rent it, have no idea of the costs associated with this activity.
Every eighth owner of an apartment or a house in England plans to buy a second home and 12% said that they are ready for this purchase despite the fact that you will have to pay increased 3% stamp duty.
Meanwhile, 21% of those potential buyers who planned to buy a property in England a year ago with the purpose of renting out, has abandoned this idea due to the tightening of tax regulation of the real estate sector. Among the reasons for the refusal of this kind of income is the need to constantly invest in the renovation of the property, as well as financial risks associated with downtime of an object when it cannot quickly find tenants.
Thus, several circumstances have led to the fact that investor interest in real estate in UK “buy to let” is reduced. Changes in British tax legislation was aimed at limiting the sharp rise of market prices for the sale and make housing affordable for families with low income, however, any regulation has a dual effect and now, if the rental market there is a shortage of supply, increasing rental rates will further hit household budgets. Under such conditions, potential buyers will be severely limited.
A study carried out by the company Cover Builder , showed that buying a second house or apartment is not a priority for families, 59% of respondents said they are willing to spend money on the extension of existing dwellings, for example, to insulate the attic or to build a summer veranda, 47% want to rebuild the existing house and 28% would like faster to pay off the mortgage.
® Alice Morgan. 20.10.2017 G.
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