Sustained Anti-Landlord Activity Means the Time to Sell May be Now

Sustained Anti-Landlord Activity Means the Time to Sell May be Now

First it was George Osborne, with his tax law changes which targeted landlords.

Then it was Jeremy Corbyn with his vision of granting the right to buy to private tenants.

Last but by no means least came John Swinney who introduced the property super tax to replace stamp duty. Then Mr Swinney added a 3 per cent supplement targeting holiday homes and buy-to-let properties.

To top it all off the Scottish Government introduced the Private Tenancies Bill.

The sum total of all of this anti-landlord activity has led to Scotland becoming the most heavily-taxed country for property owners in the developed world.

This was confirmed in a recent report written by The Taxpayers Alliance, a campaigning group dedicated to reforming the UK’s taxes.

According to their research, which was published in the Daily Mail, in 2014 the UK had the heaviest taxes on property of any country belonging to the Organisation for Economic Cooperation and Development.

The OECD consists of the 35 countries whose economies are the world’s most developed.

Their study concluded that the UK regions with the highest tax bill are the South West, the East of England and Scotland.

What makes Scottish landlords even more vulnerable than their counterparts south of the border is the uncertainty surrounding Scottish independence.

We’re not making a political point here, but we are highlighting the negative impact uncertainty has on business.

In this case the buy-to-let business in Scotland.

This toxic combination of high taxation and doubts over the future status of the country are highly likely to leave their negative mark on the residential property market.

If you are an investor who entered this market in the good old days before politicians decided to view it as a dripping roast to feed their failed fiscal policies, then you might be formulating an exit plan.

If that is the case, then we can help.

R&T Property Solutions are looking to purchase property portfolios all over Scotland.

We are based in Glasgow but distance is no object.

We are well known throughout the industry for concluding a deal in the shortest possible time.

If we want to buy your property, we can often tie up all the loose ends within a week.

Your average estate agent might take up to three months to reach the same place.

And if you are in a real hurry and need cash fast then we can often oblige.

Of course, you don’t need to be a buy-to-let landlord to attract our attention.

We want to hear from you even if you simply want to sell your home in the fastest possible time.

And don’t worry if your property is tenanted.

We can still reach a quick resolution on the purchase. That’s because R&T Property Solutions operate an ethical policy when it comes to regulated tenancies.

As specialists in this sphere, we aim to provide you with a hassle free transaction and minimal disruption to your tenants.

If you’re still swithering, then consider this: Scottish rents increased just 0.6% year on year and were down 0.4% month on month in April, marking the smallest annual rise seen since the start of 2013.

The data from Your Move also shows that tenant arrears are escalating as the level of late rent climbed for the second consecutive month, up to 11.6%.

The annual rise represents a significant downturn in rates of year on year growth from 1.1% recorded in March, and 2.1% in February and average rents are at their lowest since April 2015.

Brian Moran, lettings director at Your Move Scotland, pointed out that overall rents haven’t risen at such a leisurely place for three years but the market is seeing many price fluctuations and also isn’t uniform across the country.

“Supply and demand need to strike a lasting equilibrium to prevent rent growth taking off and leaving tenants by the wayside  and that’s a tall order in today’s regulatory environment,’ he explained.

He also pointed out that landlords are up against a considerable number of hurdles, including a higher rate of stamp duty on property purchases, reductions in tax relief, and the Private Tenancies Bill.

“While levied at landlords, these measures could soon hurt thousands of tenants too if buy to let investment retreats as a result and there are less houses and flats to rent,’ he added.

On a monthly basis, rents were cheaper in all but one region of Scotland in April. The Highlands and Islands had the fastest drop in average rents in April, falling 1.7% on March, reducing typical rents in the region to £537 per month, the lowest level seen since December 2014.

Rents in Glasgow and Clyde fell on a monthly basis for the fourth consecutive month, down by 1% in April to £538 while in the East of Scotland rents were 0.6% lower in April than in March, while the South experienced the smallest month on month reduction, down by 0.1%.

IF these statistics are the straw which breaks your camel’s back, then contact us right away. We will be happy to give you our best advice, whether we reach agreement to buy your property or not.