Tax Changes are changing the London property market
Stamp duty changes on second homes and a withdrawal of tax breaks for landlords has ultimately changed the markets. Amateur landlords have definitely been deterred with the phasing out of tax relief over four years from April 2017. This drop off in buy-to-let purchasers may be good news for those trading up.
It isn’t however necessarily great news for first time buyers trying to get onto the property ladder, especially in London. The average first time buyer needs to save for over 15 years in order to have enough for a deposit on their first home. If rental properties in London are not to be had then we are in a bit of a catch twenty two.
Rent is rising as the number of rental properties fall
According to a Rics survey, the number of rental properties on the market has fallen for the eighth consecutive quarter. This is happening countrywide. As the supply of rental properties lessens, it is predicted to push rents up by 15% in the coming five years.
Simon Rubinsohn, chief economist at Rics said: ‘A reduced pipeline of supply will gradually feed through to higher rents in the absence of either a significant uplift in the build-to-rent programme, or government-funded social housing.’
How will this affect tenants and first-time buyers in Nine Elms?
Tenant demands remain high, especially in London. Rents are expected to increase by 2% in the next year alone. New homes are not being built fast enough and even for the help-to-buy scheme people need to have a 5% deposit saved. This can seem like an insurmountable amount of money to our young workforce.
Renting really is the best option for them, giving them some cash in their pockets to spend in their communities. Keeping those cafes and bars open does more than just keep an area on trend. It keeps the jobs in the area and the renters coming. It is time to get thinking, we need a solution to what could become a crisis.
Are you a landlord with property to let in East London?
With increasing demands for rental property, now is an ideal time to let your Nine Elms, Battersea or Vauxhall property with our Nine Elms lettings team. Call or click on the links below to find out more about our range of services for London landlords.