A recent survey has shown that 97% of UK property investors feel that the Government are not doing enough to support the health of the property market.
Over half stated that the biggest problem was linked to the 3% stamp duty surcharge. The surcharge is putting off buyers due to the low threshold in which you have to pay, and conditions in the market would seemingly improve without this.
A third of investors have also called for a reversal on the recent regulations regarding buy-to-let tax relief. A further 17% support a tiered tax system for buy-to-let that would be a fairer and more positive way of supporting the property market in the UK.
Investors are keen to expand
The result of this could be considered surprising. With the emphasis on the Stamp Duty surcharge and not mortgage interest tax relief, the results of the study would suggest that we are seeing more investors seeking an opportunity to expand existing property portfolios.
This group of investors could well be satisfied with the likely change of leadership in parliament. Boris Johnson had told conservative voters of his plans to raise the threshold for paying stamp duty by 400%, up from £125,000 to £500,000. This overhaul of the current stamp duty threshold should encourage activity in the market.
The resulting news has caused some understandable noise in the property market, with over 50% of respondents saying they would back the conservative party with Boris Johnson if a general election were to be called today. This is a stark contrast to just 3% saying they would vote Labour, clearly this change is a popular one.
This is a stark contrast to what we have seen in recent years, with the government introducing a host of changes in the property market in an attempt to reduce the number of buy-to-let investors and encourage first time buyers into the market.
Difficulties in the market
Both changes to tax relief and stamp duty land tax have made investment in the buy-to-let sector hard for investors. However, investors have remained resilient and see property investment as a continued secure, profitable investment that should stand the test of time.
The need for alternative methods of investing in property is becoming an increasing requirement for property investors. Alternative funding including bridging loans and loan note investments are giving property investors alternative ways to enter the market.
UK Housing Market At Its Weakest Point
The UK housing market is at its weakest point due to the global finance crises happened a decade ago. The main reason behind it is the Brexit puts of the buyers, according to the leading estate agents.
The decline was basically led by London, where the prices went to fall after years of immense inflation. The weakness in the UK was also mirrored in the international market as well.
In the UK, both the residential as well as commercial property sales volume keeps in declining by Brexit uncertainty since June 2016. Whereas, the prices are still raising on average across the UK. In the country, the pace of growth has gradually slowed down.
There is a gaping hole in the cabinet where should be the investor as well as saving minister. The government needs to lean more towards the promotion of saving and investment in the country. It is important to help people to meet their future survival needs and at the same time, it is going to provide huge support for the british business as well. And for this, the government should appoint a minister to look after the promotion of saving and investment.