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London Property Market 21 April 2016

Chestertons Residential Observer - April 2016

Housing voters' top priority ahead of Mayoral poll

Housing is the most important issue for Londoners in the upcoming mayoral election, with 56% of voters saying it is one of the most important challenges facing the capital in a recent poll1. This represents a shift from the 2012 election, when Londoners placed housing fourth after jobs, crime and transport in a similar poll.

The election of a new Mayor of London on 5th May could have considerable implications for the capital's housing market. All of the candidates declare themselves keen to address pressing housing issues, with some of the proposed policies far more radical than others.

Landlords set up in business to offset tax hikes

Landlords are increasingly setting themselves up as businesses to counteract tax changes in the buy-to-let market. Those with corporate status can offset expenses against tax and pay corporation tax rates – currently 20% but due to fall to 18% by 2020. However, moving from personal tax status to a limited company can take up to two years and, depending on how the landlord goes about it, there may be capital gains tax and stamp duty to pay as properties are technically being sold and rebought by the newly set-up business.

Tenants on average salaries could be 'priced out'

A new report has suggested those on average salaries living in rented accommodation could be priced out of the market by 2026. The study forecasts that average deposits will rocket by 40% to £1,111, some 70% of the average worker's monthly income. The problem is expected to be particularly bad in London, where deposits are predicted to rise to £2,733 – or 120% of the average monthly salary!