If you keep up-to-date with news and the opinions of political leaders you’ll know that there has been a significant debate in recent weeks surrounding the taxing of Non Resident Landlords Property Investment including but not limited to Buy To Let Residential and Commercial Properties.
With Boris Johnson and Liberal Democrat leader Vince Cable both stepping out and making some heated comments pushing for ‘fierce’ tax policies to be instated, perhaps it is time for us to start considering what kind of impact this tax could have on housing prices.
The cost of property continues to rise and has left a lot of the younger generation at a loss when it comes to climbing the property ladder, with many now choosing to rent instead. So, just what kind of impact would tax overseas purchases have on those in the UK who own property or are attempting to? Read on to find out.
There would be more property on the market for people to purchase
At present, nearly 10% of UK property is being snapped up by foreign buyers. This is an increasingly significant problem for people attempting to get on the property ladder as there is just not enough property available to purchase. One of the reasons why foreign investors continue to invest in UK property may be because the lack of tax makes it an attractive option. Incorporating tax into foreign purchases of UK property may deter some overseas buyers, leaving more property available for Brits to purchase.
The prices wouldn’t be as high
Supply and demand have a large part to play in this issue and, of course, as less property is available due to foreign investors buying it, property costs are pushed higher overall. With overseas buyers are by no means the only reason that many find themselves priced out of the housing market, demand does have an impact on price rises. Last year the average price of a property in the UK grew by 4.7%, adding around £3,300 to the cost of the average UK property. For first time buyers struggling to scrape together the money for a deposit, this is a significant blow.
The merits of taxing foreign purchases are clear, and it couldn’t be more prevalent now as research is suggesting that a high proportion of properties in London that would make suitable homes for first-time buyers are being snapped up by foreign investors.
With Hong Kong and Singapore leading the way for those investing in properties in London that are being used for buy-to-let purposes, perhaps now is the time for taxing to be implemented more fiercely so that British buyers stand a better chance of getting on the property ladder.
As Tax Advisers and Certified Accountants, The Accountancy Solutions have an in-depth understanding of Non Resident Landlords Property Investment and offer time-effective and pressure-free solutions that fit in around clients busy schedules. The Accountancy Solution’s accountants are proud to be specialists across a wide variety of tax planning. Whatever the business, The Accountancy Solutions has the experts and can offer an unrivalled high-quality service to every one of their clients.