Buy-to-let remains a healthy investment, say PwC
10th November 2015 | News
Despite an incoming end to some tax reliefs for buy-to-let investors, a recent report indicates the lettings market still offers healthy profits, with the appeal of investing in property still as strong as ever.
That’s according to PricewaterhouseCoopers (PwC), who found that, despite the government’s decision to reduce mortgage interest tax relief for landlords, the lettings market will not be adversely affected by the halting of these reliefs.
With so many people renting a home, PwC forecasts that a quarter of all homes in the UK will be tenanted within the next five years.
The report said that mortgage lenders have a considerable stake in the fact that the buy-to-let market was extremely important to them.
But due to the new tax relief reforms, some lenders are now offering limited company buy-to-let finance products, giving investors a new tax-efficient alternative to invest in property.
Emma Wells, lettings director, Leaders’ estate agents, said: “Tenant demand remains incredibly high and is expected to continue to rise over the years to come.
“This means investors can buy a property safe in the knowledge there is likely to be a ready supply of tenants looking to rent.
“Demand is such that properties in the right locations that are well-presented let extremely quickly.
“Void periods are at a 13-year low with the average rental property being occupied for almost 50 weeks each year.”
The incoming tax relief reforms are not due to take effect until 2017, so buy-to-let investors have time to clarify their position. If you would like to discuss your individual circumstances with someone who knows the property landscape, don’t hesitate to contact our friendly team today for property tax advice.
Your local TaxAssist Accountant can advise you on all tax aspects of buying, selling and letting property.