What's in store in the lettings and rental market?
If there is one thing that is in constant change in the world, it has to be the estate agents market. There are many things that can happen at any given time in this market and it can be difficult to predict certain changes while others can be seen coming a mile away. In this article, we are going to be talking about what is in store in the lettings and rental market.
There are some important changes occurring in England and Wales and they are going to have a bad effect on property owners because the stamp duty rates are going to go up and this means that anyone who is buying property that is not meant to be their home. This is basically going to make it hard for second-home buyers to profit from their properties and it will scare buyers away.
Landlords are in for a harsh time
The rise of stamp duty is not the only thing that landlord are going to have to deal with right now, but also a good number of tax privileges that used to be exclusive for landlords are no longer going to be around. It seems that the government feels that buy-to-let and rent property owners have had more than enough of a good run and the government wants to start taking action. This seems to be unavoidable and landlords are going to have to adapt one way or another.
The rise of rental costs
The rise in the stamp duty is going to cause for a rise in rentals and this is obviously going to pose a problem for those who go prefer not to lose any earnings. Those who sacrifice and adapt to the change might not have to suffer as much.
Being that rentals are going to go up, those who will be able to adapt the most are landlords with enough income from other sources. They are the ones that are going to be able to maintain their rental costs as low as possible and this will allow them to their property even in time of crisis.
Tenants might be saying that they can’t pay more than they already have, but landlords will explain the situation to them and this is going to be a time in which many landlords will have to negotiate new contracts with their tenants. The biggest issue is that landlords are going to feel squeezed if they decide to keep their rentals the same as they did before these changes.
Buy-let might end up being too expensive for the average landlord
The changes that are taking place and tax rises are going to be discouraging for the investors that don’t really have the kind of capital needed to handle such rates. New tax changes are definitely going to create much higher pressure for homeowners and this could lead to loss that they did not expect.
There are some important changes going to be taking place in the next 12 months and 2017 is going to bring an even larger number of tax changes that are going to be quite unpleasant for landlords and tenants alike. Hopefully a middle ground will be negotiated between parties and the government is not going to be making any other drastic changes with taxation.
If you own more than one property, you need to start preparing for the those changes and you have to start thinking ahead to find out what is the best strategy for you to lose as little money as possible while being able to continue renting your properties.