Since late 2014 Stamp Duty on the purchase of residential property has been raised to high levels that has significantly changed the direction of property values. After many years of increases in values exceeding inflation and personal incomes, in 2015 these Stamp Duty increases caused falling prices from historical highs and to date there has been no sign of the reversing of this direction .
In fact, further taxes have been imposed on overseas purchasers and individuals with a second property and the mortgage market has been restricted with changes to the valuation criteria for lending.
Since mid-2016, in addition to the factors above, the uncertainty of the financial impact of the UK leaving the EU has halted many potential purchasers from entering Prime Central London residential market.
We, however, believe this is a temporary pause in values and it will become clear that being out of the EU may well encourage investment in the UK and in its residential property market.
Property owners who have enjoyed a rising market and have let their properties in London have been adversely affected by higher taxes. Further restrictions are soon to be introduced that will see a ban on charges to tenants and deposits paid by tenants on the properties they occupy. All these measures have reduced the returns previously available to landlords and altered the enterprise to become far from risk free.
We are able to offer landlords a service that replaces deposits and fees to tenants with an insurance backed set of schemes to enable the landlords to enjoy the security of a deposit involved in a letting transaction and fees for services that were previously payable by tenants.