Oh! What a lovely year
One in four households will live in private rented accommodation by 2025, according to professional services firm PwC. Here, we look back at how Assetgrove covered the events of 2015 that made it such a good year for the UK’s growing number of private landlords and improved the quality of accommodation on offer to Generation Rent.
Predictions that the Bank of England would raise its base rate from its record low of 0.5% were doing the rounds at the start of 2015.
After fears of the BoE raising its base rate eased, a record number of 817 buy-to-let mortgage products were on offer to UK landlords.
However, the average price of property coming onto the market in the UK increased 2.1%, pushing the average price of a home up by £5000 to £279,004.
A major change to pension rules due to come into force in April raised concerns that ‘granlords’ were about to spark a new buy-to-let boom at a time when the housing market was – and still is – suffering from an undersupply of good stock.
The number of people aged between 20 and 45 saving for a deposit to buy their own home fell 6% to 43% compared with a year ago, according to the latest Generation Rent report from Halifax.
While the big news this month was the Conservative Party’s shock General Election victory, we reported that following the introduction of the Deregulation Act, landlords had until 23 June to protect deposits taken before 6 April 2007. Failure to do so could land them with a fine of up to £3600.
We warned that landlords were facing fines of up to £3000 if they rented homes to tenants who do not have the right to live in the UK. Under the Immigration Act 2014, it was announced provisions to make it compulsory for landlords to check the immigration status of all new adult tenants became law in October.
Chancellor George Osborne came under fire after he used the first Budget since the Conservative Party’s election victory to announce that tax relief for buy-to-let landlords will be reduced from up to 45% to 20% by April 2020. The only good news is that the tax changes won’t start until 2017.
Buy-to-let investors were left furious after changes to the annual wear and tear allowance threaten to leave 47% of UK landlords out of pocket. The allowance currently gives landlords up to 10% tax relief on all wear and tear, whether or not damage had actually incurred.
But the new rules – which come into force in April 2016 – will only allow landlords to deduct the cost of replacing furniture if replacement is actually necessary.
Landlords were receiving an average of £946 per calendar month for newly-let properties. New research showed that the average rent for properties let to new tenants in England jumped 3.8% in the past 12 months.
House prices in London were rising by £5 every hour, according to the Land Registry. The official data revealed average property prices in London had increased by 9.6% annually to £499,997, and were more than double the national property average for England and Wales of £186,553.
Landlords accused the government of trying to kill the buy-to-let sector after Chancellor George Osborne announced that anyone buying additional properties from April 2016 will pay an extra 3% in stamp duty land tax.
Some things never change. Rumours that interest rates in the UK will increase in 2016 grew louder last week after US central bank the Federal Reserve raised its key interest rate for the first time in nearly 10 years from a range of 0%-0.25% to 0.25%-0.5%.
Here at Assetgrove, we wish you a very happy festive break and look forward to continue helping our growing number of landlords maximize the value from their properties throughout 2016 and beyond.
Our office closes for Christmas at 2pm on Thursday 24 December and reopens at 9am on Tuesday 29 December. Over New Year, our office closes at 2pm on Thursday 31 December and reopens at 9am on Monday 4 January 2016.
If you need to get in touch with Assetgrove at any time over the festive period, please phone us on 020 3553 0049.
Have a great holiday.