What should you consider before paying for a property course or mentor?

Property investment can be very profitable over time and is seen as one of the safest forms of investment during times of crisis because of the fixed, tangible, long-term nature of bricks and mortar.
However, it’s not without its considerable downsides, risks, complications and pitfalls, and there are absolutely no guarantees that you’ll make good money from a property portfolio.

It’s also highly unlikely that you will get rich fast from property, or with no money or experience to your name, as some will promise. More realistically, it will take several years, lots of experience, good education, some luck, some skill and lots of hard work to start generating a good return from property. Continue reading

How house prices & rents will affect your property portfolio in the 2020s

For many years, residential property has been the default choice for investors looking to preserve and grow their wealth. In times of uncertainty, the stability it can offer is increasingly attractive as a way to protect and safely store value.

As for returns: in 2020, residential property seemed one of the few assets that consistently grew in value, encouraged by the temporary reduction in stamp duty. But what will happen to house prices and rents throughout the rest of the 2020s? And how does this affect what works and what doesn’t for UK property investors? Continue reading

Revealed – three European countries seeing tremendous real estate growth

After several years of growth across all real estate segments, 2020 was anticipated to maintain this trend. Unfortunately, the Covid-19 pandemic put an end to these aspirations.

However, despite an economic crisis and restrictive measures imposed by governments, the real estate market in Europe is still considered to be the most attractive property investment region in the world. Before Covid-19 hit the continent, industry experts were targeting returns between 5% and 10% for their property investments in 2020. Continue reading

Revealed – the who’s who of the holiday rental world

Having weathered the various challenges of 2020, showing its resilience and adaptability with companies surviving despite the difficult travel climate, the holiday rental world is
expected to have something of a bumper year in 2021 – at least on a domestic front – as people holiday more locally once restrictions start to lift again.

With this in mind, Barcelona-based short-let platform Rentals United has sought to celebrate all the companies that complement, support, and make up the holiday rental ecosystem with their biggest publication of the year, now in its sixth edition, known as the ‘Who’s Who of the Vacation Rental World 2021’. Continue reading

Are rent to rent and lease agreements legitimate investment strategies?

Some property gurus and trainers will insist that people starting out on their property investment journey can become financially free very quickly and very easily by using strategies such as rent to rent and lease option agreements. But is this really the case? Are they a one-way ticket to easy riches, or are they actually much harder and riskier than that, with plenty of ongoing work and commitment required to make them work? Continue reading

BTR update – 500 new council homes and the resilience of PBSA

Southwark Council has appointed a team of architects who will design plans to transform the Currys PC World site on Old Kent Road into hundreds of new homes.

The mixed-use development will include the delivery of around 500 new homes, with half being new council homes, as part of the council’s programme to build 11,000 new council homes across the borough by 2042. Continue reading

Changes to the UK tax system – a guide for property investors

Kent Reliance for Intermediaries and Ernst & Young (EY) have collaborated to create a guide for property investors on the changes to the UK tax system.

The guide, which is titled ‘Changes to UK Tax Relief on Finance Costs’, has been produced to inform its intermediary partners on the key considerations faced by their landlord clients and how they run their rental portfolios.

The guidance concentrates on the implementation of constraints to buy-to-let mortgage tax relief on April 6 2017, which has significantly impacted landlords and the profitability of their portfolios in the years since.

Before April 2017, landlords and investors had been able to deduct 100% of their home finance costs from their rental income to calculate the taxable rental profit. However, the restrictions – the brainchild of George Osborne and continued by successive Tory Chancellors – have been gradually phased in and now, in the tax year 2020/21, there is no allowable deduction for finance costs at all. As well as advice on the changes to mortgage interest tax relief, the guide also lays out each tax that landlords must take into consideration before purchasing, transferring into a company structure (incorporation) or selling an investment property. This includes the Capital Gains Tax liabilities of incorporating and the implications of buying or transferring property for stamp duty land tax and inheritance tax.

Adrian Moloney, group sales director at OneSavings Bank, which owns the Kent Reliance brand, said: “Our broker partners have told us that even though Covid-19 has impacted the purchase or remortgage activity of their clients, professional landlords are not standing idle. Many are taking advantage of the current situation to re-evaluate their investments, in order to maximise opportunities when normality returns.” He added: “The latest edition of our ‘Changes to UK Tax Relief on Finance Costs’ for buy-to-let owners informs our broker partners of the key considerations facing their clients regarding the tax changes.”

Moloney said it was the company’s hope that the guide ‘will be a source of information for landlords and brokers about their portfolios but, of course, this shouldn’t be seen as a substitute for professional advice’. “We always recommend to our broker partners that they advise clients to seek advice from an accountant or tax adviser to ensure they are fully aware of their portfolio’s tax
liability,” he advised.

Martin Portnoy, partner at EY, commented: “Whether you hold an interest in UK property for personal use, as part of a property business or for investment purposes, the UK taxation landscape can be challenging. Professional advice is essential and can add great value”.

You can request a copy of the guide here.

Will Covid-19 actually increase the demand for co-living?

Canary WharfA niche, but much-discussed, sub-sector of the rental market, co-living has never really taken off in the UK in the way it might have been expected to.

While it shares many similarities with Build to Rent and purpose-built student accommodation (PBSA), with its millennial target base, shared facilities and community events, it hasn’t experienced the explosive growth of those sectors in recent years.

Continue reading

Why UK holiday rentals are still a very good bet

On June 23, the day that Boris announced July 4 as the date for the easing of lockdown in England, Sykes Holiday Cottages, the UK’s leading and fastest-growing independent holiday
cottage rental agency, registered over 276,000 sessions on its booking platform and took a staggering 400 real-time bookings each hour.

Sykes was not alone in this surge. According to a report in the Telegraph Travel, holiday rental bookings have quadrupled across popular UK destinations with many of us keen to have some respite from being stuck at home for the last three months. Andrew Easton, managing director of Cornwall-based self-catering cottage company Beach Retreats, said: “The past few weeks, since July 4 was mooted, have been like nothing I have seen in 15 years. We have seen record numbers of bookings for the summer, autumn and 2021. We’re practically full for July and August, while September and October are well ahead of last year’s occupancy levels.” Continue reading

Student housing giant looks to continue rapid growth

Unite – one of the largest providers of student beds in the UK – recently announced the successful completion of the placing it carried out, raising gross proceeds of around £300 million.

Placing Shares were issued at a price of 870 pence per share, with the placing price representing a discount of 3.1% to the middle market closing price on June 24 2020 of 897.5 pence.

A total of 34,482,759 new ordinary shares were placed at a price of 870 pence per share. Concurrently with the placing, certain directors of the company subscribed for an aggregate of 20,113 new ordinary shares in the capital of the company at the placing price, raising gross proceeds of around £175,000. Overall, the issued shares account for approximately 9.5% of Unite’s issued ordinary share capital prior to the placing. Continue reading