So where do we go from here?
House Prices
Mortgages (As advised by independent Mortgage Broker Ian Taylor)
The past couple of years have been challenging for the buy to let market, with landlords being hit by rising interest rates, tax rates and a raft of new regulations.
One piece of good news is that UK inflation has fallen more sharply than expected. Down to 3.9% in November from 4.6% in October. Before it fell to 4.6% the BOE were predicting a base rate cut in Q3, perhaps with inflation dropping quicker we might see that sooner.
As a mortgage broker I have observed in the last couple of months lower fixed rates being offered by lenders. This downward trend is likely to continue into 2024.
For more information on mortgages, contact Ian Taylor of Sandlayne Associates [email protected] 01580 755555
Rental Market
(Source: Zoopla) Demand far outstripped supply in 2023, continuing the trend over the past three years. New lets in the UK were up by 9.7% and demand up by 11%, with (in the South East) rents up 10%. However, the signs are that the market is cooling slightly due to worsening affordability, and a small drop in demand over the past few months.
Nevertheless, we still expect rents to rise around 5% in 2024 and a strong demand for rental properties coming onto the market in Kent and East Sussex. The overriding issue is that there are simply not enough rental homes available. To achieve the optimum rent for your property or for any advice about the rental market, contact Jeremy on 01424 838398 or Hannah on 01580 763577.
Capital Gains Tax
Since 6 April 2020, all CGT due on UK residences became payable within 60 days of completion, whether the disposer is UK or foreign resident and whether they are already within Self-Assessment. This ‘payment on account of CGT’ will only apply if a chargeable gain arises, so it will not affect the sale of an exempt main residence.
However, it does affect the tax payable on the sale of a buy-to-let or furnished holiday letting property. In addition, a report must be made to HMRC within 60 days of completion, declaring the gain and tax due. Late submission and/or payment can lead to late filing penalties and late payment interest.
For tax advice on selling or letting residential properties, contact David Meredith at Busbys, [email protected] or 01580 765088 as early as possible in the process.
Renters Reform Bill
We have previously advised you on the details of this bill particularly in respect of Section 21 Notices, and how a landlord will be able to gain possession of their property. The Government recently announced that the Bill will be delayed until after the court system is reformed, a process that could take years. Of course, a change in Government could alter this.
Whatever happens, Jago and Jago will keep you fully informed.
A message from Porchlight to their supporters
| Your ongoing generosity has made such a big difference to the lives of homeless and vulnerable people across Kent. In the last year you have: Helped 7,539 people get vital support when they needed it the most Supported 269 people in Kent who were rough sleeping Prevented 99% of the people Porchlight supported from losing their homes |
| Thank you for your support in 2023 when donations between us totalled £2132.70. To join our scheme (from just £1.00 per month from rental income, with Jago and Jago adding 50%), contact Jeremy at [email protected] |
| A message from Porchlight to their supporters Your ongoing generosity has made such a big difference to the lives of homeless and vulnerable people across Kent. In the last year you have: Helped 7,539 people get vital support when they needed it the most Supported 269 people in Kent who were rough sleeping Prevented 99% of the people Porchlight supported from losing their homes |
If this Journal raises any questions whatsoever, please do not hesitate to contact us: [email protected]
01580 763577 or 01424 838398