What Happened To Property Investment In 2016?
Taking a look back at the UK property investment scene in 2016 reveals two significant factors. The first of these is the stamp duty increases and the second is the Brexit result to leave the European Union. How will these affect the market in 2017?
The stamp duty changes have had an impact on the luxury end of the market to some extent. The stamp duty payable on a very expensive property has risen considerably. However luxury homes are still selling pretty well and this trend looks to continue into the New Year. If you can afford to purchase a property at £1 million plus then it is unlikely that paying a bit more in stamp duty will put you off.
The impact of the Brexit result is more unpredictable. It hasn’t had the expected impact in 2016 but it is too early to tell. The need for homes is still there in the UK and there has been a lot of foreign investment in UK property this year. Investors in property are normally shrewd and they are not letting the Brexit vote influence their decisions. Neither should you.
Halifax Building Society Predicts Property Price Increases In 2017
Prices in London have slowed over recent months. The Halifax building society is predicting that property prices across the country will rise in 2017 despite this. The Halifax believes that the value of properties will increase anywhere from 1% to 4% in the coming year. With interest rates still low and house building levels still subdued they are confident of this.
The south east of England is still suffering from a housing shortage and this is not going to improve much in 2017. The number of new homes being built in England and Wales is fewer than 150,000 per year which does not put much of a dent in the problem. The number of people looking for rental properties is still likely to be high in 2017.
The Buy To Let Market Faces New Challenges In 2017
When it comes to the buy to let market there will be more stringent affordability checks implemented to test landlords in 2017. This means that buy to let mortgages will be more difficult to obtain than in 2016. The new tax relief withdrawal rules will be introduced in 2017 as well which could slow buy to lets down even more.
Even with these changes the buy to let market still offers good opportunities and it is likely that shrewd property investors will not lose their appetite for this market. With rental demands not showing any signs of decreasing it would be stupid to overlook the opportunities.
We Are Confident Going Into 2017
Here at CPI we are totally confident about property investment in the UK in 2017. We firmly believe that there will be many opportunities to make good returns. Every year the press claim that the housing market will suffer and this will lead to people “panic selling” their properties at less than market value. This is a good opportunity for us all.
So why not join us and share in this opportunity? Our “hands off property investment” has been successful for a number of people. We do all of the work and you will get a good return on your investment. If you want to know more about teaming up with us then please contact us here.