Page 4

Oliver_Jaques_December_2016online

Oliver Jaques YOUR LOCAL PROPERTY EXPERTS TRIED, TESTED AND REGULATED FOR YOUR PEACE OF MIND Michael Petherbridge Stephen Banks Michael Petherbridge MNAEA | Branch Manager Stephen Banks MARLA | Lettings Manager Is it still profitable to invest in buy-to-let? We saw throughout 2015, a huge shortage in quality houses and apartments, with demand primarily coming from those looking to get on the ladder to buy, but have been unable to, due to the large sums required for a property purchase deposit. In a move aimed at boosting levels of home ownership by taking away privileges from buy to let landlords, the Chancellor announced in his July budget that he would be slashing the tax relief private landlords receive on their mortgage interest payments.  This will be a gradual process cutting relief from 45% to 20% by April 2020.  In summary, the tax changes, which begin in 2017, will see landlords lose a quarter of their higher-rate relief each year until 2020, when it will be restricted to 20% on all mortgage interest. The aim of these measures is to make buy-to-let less appealing resulting in an exodus of said buyers from the market, followed by an influx of properties to the market being made available for first time buyers. Yet the much debated question, still making the headlines 5 months later is not the first time buyer issue, but whether it is still profitable to invest in buy-to-let.  The answer to this lies in who you are and your circumstances – these changes have and will continue to divide buy-to-let landlords. We expect demand from tenants to be at the same level as 2015. The fact remains that renting is a great option for those looking for flexibility and relatively low initial outlay when compared to a purchase, so despite the aforementioned changes, demand from tenants will continue to out strip supply in 2016, meaning landlords can still achieve high rental returns. I joined Oliver Jaques in 2001 after starting out my working life in the hospitality and catering industry. Seeking a change of direction, I could never have anticipated just how much my new career would enhance my life and how passionately I would feel about property and the enjoyment I would experience from dealing with both vendors and buyers, and from helping people to find their perfect home, to the often stressful but ultimately rewarding sales progressing. When I received promotion to Branch Manager in 2008 it truly was one of the pivotal moments of my working life. Over the past 15 years, Oliver Jaques and I have both come a long way, experiencing many changes, to not only the agency but more importantly our ever expanding local area. Since 2001 I have seen the massive development of areas including Rotherhithe, Canada Water and Greenwich, as well as most notably the Docklands, which has attracted a plethora of new professionals, families and investors drawn to the easily accessible transport links, nightlife and attractions such as the O2 arena and Olympic Park Stadium. With the further development of Surrey Quays and Canada Water, such as Greenland Place, Tavern Quay and The Quebec Quarter to name just a few, I look forward to the next 15 years being even more demanding and rewarding than the last. local. established. recommended. south east london www.o-j.co.uk 020 7231 5050 east london 020 8980 0999


Oliver_Jaques_December_2016online
To see the actual publication please follow the link above