The UK property market is booming, and cities like Manchester and Birmingham offer overseas investors one of the most profitable and affordable markets in the world. All indicators show that house prices will rise rapidly over the next five years, making UK property a premium investment opportunity.
However, time is of the essence. Changes to the Stamp Duty Land Tax (SDLT) mean that investors should buy sooner rather than later to secure the best deal possible and ensure high rates of profitability in their portfolios.
Four years ago, a 3 per cent SDLT surcharge was levied on any residential property which was purchased for leasing purposes. The charge increases depending on the value of the property bought, up to a rate of 15% for properties worth more than £1.5m.
In its latest move, the UK government has announced new plans in the Budget for an additional surcharge of 2 per cent for overseas buyers of UK buy-to-let property. This will be introduced in April 2021 and it is expected that this will generate a surge of property transactions over the next 12 months – meaning competition for the most desirable city centre apartments will increase even further.
Additionally, the current weakness of the Sterling means that overseas investors are operating at a functional discount in the UK property market. When purchasing an off-plan property at a below-market rate, this advantage is magnified.
Therefore the next 12 months is a crucial period for non-UK investors looking to grow their UK buy-to-let property portfolios by taking advantage of the favourable conditions ahead of tax increase planned for April 2021.
If you would like more information on investing in UK buy-to-let properties – and making the most of a booming market – please get in touch with the Alliance Investments team today.
Alliance Investments
Website: alliance-investments.com.hk
Enquiry: (852) 6799 1537
Mallam Grant, Head of Office-Hong Kong
