Norwich, Norfolk, UK, 07/11/2017 /SubmitPressRelease123/
Piercing the black miasma of recent industry news, with a refreshingly positive message, is Andrew Turner of leading UK buy-to-let brokerage, Commercial Trust.
It would be easy to read this statement and write it off as a positive spin, given the position that Andrew holds, but Mr Turner covers off five key areas of concern for UK landlords and his arguments to back up his conclusion are pretty robust.
Taking on the threat of an interest rate rise, the government’s promises to build adequate housing, the stamp duty levy, Bank of England’s new affordability measures and the receding mortgage interest tax relief Andrew gave us a measured and reasoned picture of the reality.
On interest rates:
“Given the uncertainty of everything Brexit, Trump and North Korea-related, the Bank of England (BoE) knows it needs to achieve economic harmony as best it can, so a big jump in interest rates is unlikely to happen in the near future.”
“In the last economic crash, huge numbers of people were forced out of house-building trades. This means that, even if the government could put the structure in place to build, there are not enough people to do the work.
For this reason, housing will continue to be in short supply, house prices will be out of reach to many and rental property will be in demand.”
On the 3% stamp duty levy:
“Landlords run property investments as a business, just like any other business owner across the UK. A business has to make profit to be worthwhile. If costs to offer a service go up and demand for the service is sustained or heightened, a business will up the cost of the service to its clients.
Buy-to-let is the same.
The government has not helped tenants by increasing stamp duty tax to landlords, they have simply increased the rent bill.”
On PRA changes to mortgage affordability calculations:
“Lenders have responded swiftly to the changes and there are products on offer that present great solutions for landlords.
It is far better to take a proactive approach so that you are clear on your position. I am very much of the view that what some perceive as a problem is simply a challenge to overcome. My team knows I am always a man with a plan.”
On the withdrawal of mortgage interest tax relief:
“Profits from buy-to-let may not be the easy-money of days gone by. However, in the long term, bricks and mortar will commonly achieve capital growth. Making profit from rental income is simple accounting.”
The last point is certainly from the heart of the man. An accountant by trade, Andrew is never one to overlook reality on the numbers. Andrew Turner’s assertion for UK landlords is backed by his actions, as Commercial Trust is in a period of growth, “if you hear new voices on the phone when you call us, just take it as a sign that I am backing buy-to-let all the way”.
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