Industry Thought Leaders:
Commentary on the property market for 2018
David Sandeman, EIG Managing Director was asked to contribute to The Property Investors Blog with his thoughts on the property market to feature as part of a wide array of commentary from other property industry thought-leaders who all took the time to reflect on the market moving into 2018.
“The auction market made a fairly sluggish start to 2017, most likely affected by the cloud of Brexit uncertainty and the Prime Minister’s surprise decision to hold a general election. However, things picked up well in the latter half of the year, with significant gains made in lots sold and amounts raised whilst sale rates remained in the mid-to-high seventies.
There was a marked difference in results across the UK, with northern regions experiencing notable growth spurred on by increasing numbers of lots being sold conditionally, lower-than-average house prices and attractive yields. In contrast, London and the South-East cooled off, having seemingly been in its own imperious bubble for the last few years.
It is difficult to predict how the market will fare in 2018. The government’s attempts to temper the buy-to-let market by introducing a stamp duty surcharge on buy-to-let and second home purchases, coupled with reforms being phased in that reduce the tax relief on mortgage interest payments for buy-to-let landlords, could decelerate growth. However, speed and certainty of sale, transparency and the wide variety of stock available ensure that auctions remain an attractive proposition for buyers and sellers alike.”
The Property Investor's Blog (extract)
For higher tax paying private landlords, taking heed of the intensifying effects of Section 24 of the Finance Act is frequently mentioned, as are some useful tips to best prepare, and indeed capitalise, for what look set to be a turbulent few years ahead.