It’s only January, and 2019 has already been a busy year for the property market.
For buyers, the market has slowed slightly. In London, property prices have gone down 1.7% in the first month of the year, and reports show that 55% of first time buyers are delaying purchasing a home until the uncertainties of Brexit have been revealed. However, transactions remain high: in the latter half of 2018, the number of properties going under offer increased nearly 6%. Portico has again reported strong numbers this month, spurred on both by reasonable prices and pressure in the housing funnel.
The rental market remains steady, and is expected to strengthen throughout the year. Rents are beginning to creep upward, and may increase as much as 2% by the end of 2019. Tax changes have affected the profits of landlords, and many are selling their properties. However, the demand in the rental market has risen dramatically.
What does this mean for buyers and sellers? There is certainly still appetite in the market, as house prices and transactions are expected to rise in 2019 after the immediate fear of uncertainty has fallen to the wayside.
Click here you’d like an up-to-date rental valuation or if you’d like information about our Landlord services, give us a call.
January's To-Do list
For Property Owners
For property owners, now is the time to take care of any winter maintenance issues. Clean your gutters, and check to make sure your roof is in good condition. Take a look at our guide on maintaining your property in the winter months, here.
The tax return deadline is 31st January 2019. Tax returns can seem extremely daunting for landlords, as understanding payment requirements and what you’re able to offset against your income can be far from straightforward. However, there are some easy ways to make sure that you’re sending everything through correctly.
Know what you owe
Landlords are allowed to deduct expenses that are directly related to the day-to-day running of the property. These include:
- Letting agents’ fees
- Accountants’ fees
- Buildings and contents insurance
- Property loan interest
- Legal fees for lets of one year or less, or for renewing a lease for less than 50 years
- Maintenance and repairs (not improvements)
- Services such as cleaning or gardening
- Utility bills
- Council tax
- Ground rent and service charges
- Direct letting costs such as phone calls or advertising
- Vehicle running costs
Be prepared for tax changes
Landlords are no longer allowed to claim full tax relief on their buy to let mortgages. This relief has now dropped to 75%, and will be obsolete by 2020. What does this mean? A significant change in potential profits for landlords. For more information about the tax changes and regulation changes that landlords will face this year, check out our blog post.
Consider an accountant
The easiest way to do your taxes is to employ an accountant. Many do thousands of tax returns in January alone, and are in a great space to help you achieve your goals. Accountants can help you by making sure that you claim everything back that you can, and by recommending tax saving opportunities in the future.
If your mortgage is coming towards the end of it’s fixed period it is always good to get the latest valuation of your property and check the range of mortgages available to you, give Portico Finance a call on 020 7731 9680.!!
Data for the blog has been taken from Portico, BBC, The Guardian, London Residential, House & Property and Financial Reporter.