Reviewing your property portfolio plans?

Reviewing your property portfolio plans?

The government has recently hiked up the rates of both Capital Gains Tax (CGT) and Stamp Duty, affecting those expanding or liquidating a property portfolio. The Stamp Duty payable on buy-to-let properties now starts at five percent and rises on higher value properties. Basic-rate taxpayers now pay CGT at 18% and higher-rate taxpayers at 24% on qualifying assets. However, for those who are not deterred from investing in property or who already have an established property portfolio, what are the current hot topics to consider?

Energy efficient Buy-to-Let properties

Energy efficiency is rapidly becoming a key factor for buy-to-let landlords.  The rules around property energy ratings continue to tighten and landlords will be expected to provide rental properties with meet minimum EPC standards. Ensuring that buy-to-let properties have effective insulation, double glazing and, potentially, solar panels will attract more tenants and enable landlords to charge higher rents as well as being compliant. Eco-friendly improvements are likely to be encouraged by future government incentives.

Alternatives to traditional Buy-to-Let

There are increasing trends in some areas of the country towards either Build-to-Rent or Co-Living properties.  Both are purpose-built to appeal to potential renters who require good quality rental accommodation.  At present these are mainly seen in rapidly expanding cities and towns.

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Who will be your tenants?

Finding the right tenants is important for any landlord.  However, new rules coming in, resulting from the Renters’ Rights Bill, are going to mean that landlords will have to avoid being discriminatory when seeking to attract new tenants, so ‘no children’ and ‘no pets’ will become a thing of the past.  However, it will still be possible to turn away a potential tenant if the property is clearly not suitable for them, for example if a family of seven apply to live in a one-bedroom flat.

What can your tenants do in the property?

There will be the obvious restrictions about no antisocial behaviour or upsetting the neighbours.  Following a recent High Court decision, a more interesting topic is whether you should give tenants permission to run a home-based business.  There are some specific guidelines to explore about what is considered as ‘business occupation’ rather than just bringing work home or selling items on Vinted or Ebay. The bottom line is that, if you aren’t careful, you could find that your tenant ends up protected by legislation which is mainly designed to prevent commercial landlords jeopardising a business by asking a tenant to leave.

Long-term or short-term property investment?

Long term buy-to-lets have been popular for many years but there are now an increasing number of investors who are ‘flipping’ properties instead by buying them cheaply, doing them up quickly and selling them on. Also on the rise is the BRRR model where people Buy, Refurbish, Rent and Refinance.

Whatever your chosen property strategy, if you need help with buying or selling property or are a landlord facing issues with a tenant, the team at Fraser Dawbarns can help.

How To Contact Us:

To contact a member of our team, you can fill in our online enquiry form, email info@fraserdawbarns.com, or call your nearest office below. If you’d like to speak to a member of our team at one of our offices across Norfolk and Cambridgeshire, visit our offices page.

Wisbech: 01945 461456

March: 01354 602880

King’s Lynn: 01553 666600

Ely: 01353 383483
Downham Market: 01366 383171

This article aims to supply general information, but it is not intended to constitute advice. Every effort is made to ensure that the law referred to is correct at the date of publication and to avoid any statement which may mislead. However, no duty of care is assumed to any person and no liability is accepted for any omission or inaccuracy. Always seek advice specific to your own circumstances. Fraser Dawbarns LLP is always happy to provide such advice.