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Investment News Spring 2015


COULD “RIGHT NOW” BE YOUR BUY TO LET WINDOW OF OPPORTUNITY?


The upcoming general election inevitably brings with it a degree of uncertainty. In what will undoubtedly be our most property focussed election those with a stake, either large or small, eagerly await news on the political, social and fi nancial direction of our country. The UK property market does however now possess characteristics so intrinsic it becomes diffi cult to imagine how any political party, with a limited term in offi ce, could make a signifi cant impact.


As strict new criteria on residential mortgage lending appears unlikely to relax, the average age of fi rst time buyers will inevitably continue to rise. Equally for young professional people without the benefi t


of JOHN GEBBELS


signifi cant deposit fund, now so frequently drawn


in from ‘The Bank of Mum and Dad’, a signifi cant period of time spent in the private rented sector will become an increasingly common experience.


Whatever your political, social or fi nancial standpoint on this evolving characteristic there will be positive impacts on private rented accommodation. Professional tenants demand well located and high quality accommodation and as the supply of such accommodation continues to increase, tenants will have the luxury of becoming increasingly choosey over specifi cation, furnishing and fi nish.


Not only is the UK tenant base changing but the dynamic of typical UK landlords is also moving. A prime example of this shift is within Oxford where


‘Houses in Multiple Occupation’ legalisation has successfully removed former ‘slum landlords’ from the market with diligent and proactive new investor landlords taking their seats. In a city where around 30% of residents live in rented accommodation ‘Houses in Multiple Occupation’ legislation was entirely necessary. The benefi cial impact on rental housing stock across the city is visible.


As pension annuity reforms come into place this month a brand new era of ‘Grandlords’ will enter the market. These investor landlords, attracted by poor returns on savings and a volatile stock market, will be both savvy and sensible in their purchasing decisions, no doubt contributing further to the improved quality of private rented stock. A growing wealth of quality tenants will ensure smoother letting and minimal void periods, music to the ears of any prospective property investor! Cont. on page 2


STOP PRESS | BUDGET ANNOUNCES CHANGES TO OVERSEAS OWNERS CAPITAL GAINS TAX EXPOSURE


With effect from 6 April 2015 the owners of UK residential property which reside overseas will be liable to capital gains tax upon the disposal of their asset.


There are various exceptions however the majority of privately owned UK residential property with an overseas


resident owner will be liable. The


taxation will be calculated on gains from 5 April 2015 onwards. scottfraser have already written to all of our overseas landlords advising on upcoming changes and recommending a ‘red book’ valuation to future proof our clients against any potential value challenges by HMRC.


scottfraser Property Acquisition and Investments John Gebbels, Property Investment Manager


@investinoxford | 10 Lime Tree Mews, 2 Lime Walk, Oxford, OX3 7DZ | investments@scottfraser.co.uk


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