Experience Invest Talks about UK Buy to Let

What changed? Before April 2017, private landlords were able to benefit from significant tax relief by deducting their mortgage interest payments from their rental income, meaning their taxable income was lower and they didn’t have to pay as much to HM Revenue & Customs. Since the new system was introduced two years ago, the amount of mortgage interest buy-to-let property owners have been able to offset against their rental income has steadily reduced, falling to 75 per cent in 2017-18, 50 per cent in 2018-19, and 25 per cent in 2019-20. From April 2020, this form of tax relief will be removed altogether.

Instead, landlords have been able to claim a flat 20 per cent rate of tax relief on their mortgage interest payments. While this means people who are in the basic 20 per cent income tax bracket should be no worse off, higher earners in the 40 per cent tax bracket will face bigger tax bills. This is clearly a big change, and existing landlords and prospective investors alike should be fully aware of how it affects them. As far as the UK buy-to-let sector as a whole is concerned, it’s clear there are still many opportunities for buyers to turn the latest trends in the market to their advantage.

Experience Invest also highlighted the potential of regional property investment markets in a recent report based on a survey of more than 500 investors. While Greater London topped the list of regions investors are considering in 2019, the north-west wasn’t far behind. One in three respondents (33 per cent) said they were thinking about buying in Manchester this year, while one in four (25 per cent) were looking at Liverpool.

 The gradual removal of mortgage interest tax relief is an important consideration for buy-to-let property owners, but investors can also take reassurance from the wide range of products currently available on the mortgage market. According to research by Moneyfacts, the number of buy-to-let products available in February 2019 was at its highest level for over a decade, with landlords able to choose from 2,162 products. This is higher than at any time since before the 2008 financial crisis. Moneyfacts noted this increase has come “despite the tax and rule changes imposed on the BTL sector over the last few years”.

This has fuelled other trends such as the growth of the build-to-rent sector, which is delivering more developments earmarked specifically for the private rental market. Considering other key factors, such as the powerful appeal of UK higher education and consequent demand for student rental accommodation, it’s clear there is still huge potential in the buy-to-let market for investors to achieve regular yields and long-term capital growth.

With 39 per cent of respondents to Experience Invest’s survey saying they plan to expand their property portfolios this year, it seems the mortgage tax relief changes haven’t stopped people from wanting to invest in UK real estate.

Experience Invest approach to any of these student accommodation projects is to always work closely alongside the universities, where possible, to provide internships or some awareness campaign within the university. Not only is Experience Invest a sales and marketing organisation but they are also a developer and a management company. Stay updated with the latest in the property market by reading about Experience Invest online here. You can also visit  Experience Invest  Crunchbase page here and follow the official Experience Invest Twitter here.

Experience Invest talks about the UK property market 

Welcome to the Experience Invest blog. Experience Invest is the master agent for all of its high performing property investments. In today's post, we'll talk about the UK property market, and the buy-to-let sector, in particular. Read on to find out more.

Recent years have raised some challenges for the UK property market, and the buy-to-let sector caused by Brexit and the increased stamp duty on second homes introduced in April 2016. Investors have also had to contend with the gradual phasing out of buy-to-let mortgage interest tax relief, which is being replaced by a 20 per cent flat-rate tax credit. Despite these considerations, there are reasons to be positive about UK property and the mortgage market at the moment, one of which is the favourable interest rate environment.

RATES STAY LOW

The Bank of England made its latest monetary policy announcement at midday on Wednesday, May 2nd, confirming, as expected, that the base rate of interest would stay the same at 0.75 per cent. That means mortgage borrowers on tracker or variable-rate deals don’t have to worry about their payments going up in the short term. Furthermore, the central bank is currently anticipating just one increase in interest rates by 2021.

A BRIGHTER ECONOMIC OUTLOOK

Questions about Brexit will continue to cause a degree of uncertainty in the near future, but for investors looking for opportunities in the UK, the favourable interest rate environment and positive trends in sectors such as student accommodation suggest there are still major gains to be made in the property market.

What does this mean for the property industry? For property investors, today’s announcement provides a silver lining for property investors who have experienced a wave of tax changes over the last few years. Commenting on the Bank of England’s announcement, Jerald Soils of Experience Invest said:

“It’s not surprising the Bank of England has decided to keep interest rates on hold. Since the global financial crisis, the BoE has taken a very cautious approach to the interest rates, and Brexit uncertainty has made things even more complicated. However, it is positive to note that the BoE is also more optimistic about the future growth prospects of the UK economy, demonstrating that Brexit is not undermining national productivity in the long-term."

Experience Invest on UK Hotel Sector Investment

Welcome to the Experience Invest blog. Experience Invest is a trusted source of knowledge and is a specialist provider of market-leading products to its ever-expanding database of over 120,000 clients. UK’s hotel sector continues to grow despite having to navigate various challenges and times of uncertainty, the UK hotel sector has witnessed consistent growth in recent years. The resilience that the UK’s hotel sector has shown in recent years has attracted investors from across the globe, who wish to diversify their portfolio without compromising on their rental income. New alternative asset report ranked hotels second among the niche sectors being considered for investment in 2019.

How does Investment Work?

Investors purchase one or more studio suites that are leased back to a well-established management company on a rolling agreement so the building, in its entirety, can be let as student accommodation. The managed turnkey nature of the investment allows investors a fully managed approach, whilst taking advantage of yields much higher than traditional ‘buy-to-let’ investments.

Assured Income

UK hotel suites offer some of the highest assured rental returns on the market. Returns are paid NET of all costs, allowing investors to receive a reliable income stream.

Fully managed

To maximise the performance of the opportunity, a specialist management company will operate the hotel upon completion. All suites are delivered fully furnished.

Proven Returns

The UK’s hotel market has shown consistently positive performance and growth. Hotels are ranked the second choice for investors expanding into niche sectors.

UK hotel suite investment in Luton

Hotel suites are very attractive and lucrative investment opportunities that were traditionally only available to large institutional investors and funds. Due to the rarity of this type of opportunity, hotel investments tend to sell out very quickly. For example, our investment opportunity in Luton, The Epic Hotel and Residence will feature a selection of luxurious hotel rooms which will generate a 10% NET rental return per annum assured for 10 years.

Boasting river and city views, the Epic Hotel and Residence is the first luxury hotel to emerge in Liverpool’s trendy Baltic Triangle. Guests will enjoy the convenience of the city centre location, with all the city’s iconic tourist attractions just moments away. This investment will be delivered fully furnished and will be fully managed by Epic. With just 220 Hotel Suites available, investors are encouraged to act quickly to secure the best pricing and to pick the best units. Find out more about the Experience Invest Luton investment on the Experience Invest website here. Read the latest Experience Invest news here. Alternatively, you can also follow Experience Invest on Behance here.

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Experience Invest talks about Off-plan property investment

UK property has long been an attractive market for international investors seeking out lucrative assets and opportunities on the global stage. For those planning to invest in British real estate in 2019, some of the strongest prospects can be found in the luxury sector. High-end property features and amenities give landlords greater scope to maximise their yields through higher rents, which could prove particularly valuable in areas where demand for desirable accommodation is high.
Luxury appeal

Appealing to the luxury market – whether it’s through a property’s location, exterior look or interior design touches – will always be a powerful advantage for buy-to-let investors keen to secure the best possible returns from their assets. Tenants are often willing to pay a premium for desirable features and unique add-ons that might not be available in other properties.

Experience Invest Brexit on Construction Industry

Welcome to the Experience Invest blog. Experience Invest is an established specialist property consultancy, we have a range of completed investments that are fully occupied and completed to a high standard. Brexit continues to dominate public discourse, and with all eyes locked on 29th March, people are keen to understand just what the UK’s departure from the EU will mean for the economy. However, despite the tumult surrounding Brexit, it is important not to let this overshadow some of the longer-term challenges facing the UK, the most prominent of which is the housing crisis.

There is a chronic undersupply of residential properties available on the market, and with demand continuing to outpace supply, there are concerns that more potential buyers will not be able to access new housing opportunities. Positively, the Government has recognised the severity of this issue. As a result, the Government is aiming to add 300,000 new homes to the market each year by the mid-2020s as part of its strategy to address the demand-supply imbalance.

Such a pledge places immense importance on the UK’s construction industry: the firms tasked with building the residential properties that are so sought after across the country. And so we return to Brexit, and in particular, the question of how we can ensure the construction sector is positioned to effectively deliver enough new-build properties after 29th March.

For one, attention and resources need to be directed towards supporting the skills necessary to deliver the long-term housebuilding needs of the UK. It is estimated that 7% of workers in the construction industry are EU nationals, with this number jumping to 28% in London.

While we await greater detail about future visa arrangements of EU nationals following Brexit, a skills shortage could pose significant challenges and undermine the overall construction capabilities of developers both large and small. Furthermore, physical materials and investment into infrastructure are two other areas that must be addressed as we head for Brexit.

Experience Invest is a leading provider of high performing UK investment properties established in 2004. Find out more about our services and the latest news about the property investment by reading about Experience Invest online here. Show your support online now by following Experience Invest official Twitter page here. You can also connect with Experience Invest in Crunchbase and join our network here.

Experience Invest has launched its 2019 UK Student Property Investment Guide, providing a range of resources and expert insights on the student accommodation sector.

Now it is the sixth year, Experience Invest’s UK Student Accommodation Investment Guide is a valuable resource for investors who wish to generate an income from Britain’s number one performing asset class.

UK’s no.1 asset class