Doom and Gloom - Get me a Broom…
Friday 5th May 2023
By Patrick Bullick
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To read some of the Q1 reports from ‘important’ large agents you would think the world was about to end.
Always the contrarians, at STANLEY PROPERTY LONDON we have actually had a pretty busy time in Q1 and it looks set to be the same in Q2.
Many of our long term landlords who carry mortgages have been assessing their positions.
The increase in interest rates is not helpful but the core issue is they can no longer offset the interest on their mortgages before tax. Thanks to ‘Gordon’ Osborne and those Muppets in the Treasury, a private landlord now has to pay tax on their income and then the interest on the mortgage, out of net income.
For many, this makes letting unprofitable and continuing as a landlord untenable.
The net result is that quite a few of our landlords are selling, or seriously thinking of it.
It can be argued that this is a good thing as it allows owner occupiers to buy - and this is happening.
However, the reduction in rental supply does mean that rents are getting higher for those remaining landlords.
I see this as a good opportunity for new landlords buying in cash -simply happy to have a good income.
Or, if you buy in a company name, mortgage interest can still be offset against income before tax.
Click here https://www.stanleypropertylondon.co.uk/sales/ to see a few good examples of properties being sold by landlords, and which could make good homes or investments for others.
Price is key, and our current stock is pretty accurately priced - though we say it ourselves!
We have others where tenants are in situ but the owners may sell. Just ask. patrick@stanleypropertylondon.co.uk
Otherwise - until next time.
PB
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