What’s going on in the UK market?
The UK property market is one of the most exciting property markets in the world and the opportunities to create long term wealth are plentiful.
The upside is that, when you find an experienced investor that knows the market and has a proven track record, you really can make some great returns on your investments. However, with so many people advocating that they are property investors, you absolutely need to be able to differentiate between those who will actually look after your investment and those who might not.
There are also many existing factors that are affecting the UK property market and it is imperative that your chosen partner understands these. Here's our view on some of the current affairs in the UK:
Changes in Taxation
The way in which landlords are taxed has recently changed in the UK which has received much negative press. However, when cutting through all of the headlines, we see that most of these changes in taxation are only applicable to the private landlord and, as we run our business as a business, all but one of these changes in taxation do not impact our business whatsoever.
Therefore, whilst some inexperienced or uneducated landlords are exiting the market due to the changes in taxation, we very much see this as an opportunity to expand and pick up properties at discounted rates, by investing in an efficient manner.
Changes in Legislation
There has also been a shift in legislation, where the Government have tightened control and raised minimum standards that a property investor or landlord need to adhere to. We welcome these changes and firmly agree that the standards should be improved. These changes remove the investors and landlords who cut-corners and who don’t care for their clients and tenants.
We see so many landlords treat the legislation as the maximum standard to be achieved. We, however, use the legislation as the minimum standard and will ensure that each of our properties are to a much higher standard. This not only sets ourselves apart from our competition when we are letting or selling our properties, it means that the local government departments always know that when they are due to inspect our properties, they already have an expectation in their mind that they are going to inspect a high-quality property.
So many property investors have a ‘that will do’ approach. Our view is ‘that won’t do’ and always look to provide the highest quality homes.
In summary, our outlook on these recent changes is that the UK Government tightening control on the UK private rental sector (PRS) is a good thing for the professional investor and, most importantly, the tenants. Changes in standards therefore only improve our position and ensure that we are able to lead the way in the UK private rental sector.
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