The Chancellor’s Pre-Budget report has hit holiday home owners. UK property investors who rent out their holiday home in the UK will no longer be able to offset the costs of that property against their tax bill.
The new rules look set to be introduced next April and will stop property investors with second homes from being able to write-off their mortgage interest and other maintenance bills as a business loss. Investors will also not quality for capital gains tax (CGT) relief, hitting those who will look to buy a new holiday home from the proceeds of other property sales. Read more... (269 words, 1 image, estimated 1:05 mins reading time)
The dynamic of the European property market is set to change considerably in the New Year, with the UK potentially the biggest loser, experts predict. From 1 January 2010, companies and trustees managing investment funds in the Channel Islands, Isle of Man and British Virgin Islands will be able to invest in French properties free of the French annual 3% tax on their open market value. This will radically alter the flow of funds within Europe and represents a genuine threat to any recovery in the UK property market. Read more... (753 words, estimated 3:01 mins reading time)
According to the UK’s Office for National Statistics, the number of people visiting the UK fell in 2008 for the first time in seven years – down 2.7 percent to 31.9 million visits. The last time that the UK saw a decline in the number of visits was 2001. The final quarter of the year saw the most marked change with visits down 13 percent.
The most notable decline in visitor numbers came from the US where visits fell by 17 percent to 3 million. Read more... (292 words, estimated 1:10 mins reading time)
The UK property market, already reeling after 18 months of price declines, is to face new competition for offshore investment money as funds in the Channel Islands and Man will soon be able to invest in French property without any prohibitive French tax charges.
The imminent removal by France of the annual 3% tax on the gross value of French property that currently applies to investors based in Jersey, Guernsey and the Isle of Man will considerably widen the property market for direct investment and may threaten any nascent stabilisation in the UK property market, reducing demand for UK investment properties and applying additional downward pressure on capital values. Read more... (831 words, estimated 3:19 mins reading time)
A new report by Savills Research has shown that central London residential property prices grew for the first time since they starting sliding in September 2007. Over the past three months, property prices in central London rose by 4.3%.
Partly the rise has been fuelled by property investors believing that the housing market is nearing bottoming out and therefore property bargains can be had. There is also a lack of good quality property on the market so when good properties have a For Sale sign on them, they are being snapped up quickly at close to the asking price. Central London is also perceived as a good area to buy in as it is relatively low risk compared to other major city properties as it is home to so much business and there will always be a good supply of renters who are professionals. Read more... (282 words, estimated 1:08 mins reading time)
