Looking to Sell Your Property in Scotland? We are Buying, Now!

Looking to Sell Your Property in Scotland? We are Buying, Now!

Landlords in Scotland appear to be caught up in a vicious circle, with property prices dropping and the Government continuing to introduce restrictive red tape.

But fear not. R&T Property Solutions can offer a simple, no-nonsense remedy.

We are based in Glasgow but are on the look-out for flats right across Scotland.

If you were a buy-to-let investor and think now is time to get out of the industry then speak to us. We can purchase your property and pay cash for it, often in just seven days.

And let’s face it, the future for landlords may not be as rosy as it once was.

Many could turn their back on the business as a result of recent Government action, according to one expert commentator.

Henry Pryor, described as “The BBC’s favourite property expert”, suggests that new regulations about immigration might be the straw that breaks the camel’s back.

He recently stated that some landlords will be driven out of the business altogether, once they start having to obey the new regulations aimed at illegal immigrants which came into effect in February.

Under these rules, landlords will have to check, on pain of a £3,000 fine, that their tenants have the right to rent in the UK.

“Many landlords are finding this is a rather frightening prospect and are talking of giving up as a result,” he says.

The increase in Stamp Duty is also a major concern, as Henry explains: “Because rents are unlikely to rise to compensate for the increase in stamp duty, capital values are likely to fall.”

Perhaps these issues have combined to force a drop in house prices in Scotland during the past 12 months.

A recent report in The Herald says prices in Scotland have fallen slightly in the past year.

The article states that Scotland and the North of England are the only two areas in the UK to have experienced a reduction in property values.

By contrast, throughout the country as a whole the average cost of owning a property rose by 5.7%, the highest increase in over a year.

The average house price in Scotland is now just under £140,000.

Across the UK, meanwhile, the average price of a home is just over £200,000, with prices rising by just under one per cent in the past month alone.

This UK-wide jump was predicted by experts who claimed the introduction of a higher Stamp Duty would lead to a rush of buying before the new tax came into force on March 31.

One leading commentator, Ray Boulger of the mortgage brokers John Charcol, predicted some turbulence in the early months of 2016.

He reckoned that some people would rush to purchase buy-to-let properties before the higher stamp duty rates take effect.

“Those people who want buy-to-let properties are clearly going to be incentivised to complete before 31 March,” he said.

“Till then I think we will see some quite strong growth in prices, then I expect to see prices falling for the next few months as that element of demand is taken out of the market.”

So it is possible that prices are set to fall still further now that the Stamp Duty rush has taken place.

But perhaps the biggest threat to the future values of typical buy-to-let properties comes from the Bank of England.

Low interest rates have attracted many new investors who have joined the property business thanks to very low mortgage rates, which made it easy to afford even expensive homes.

These would otherwise be out of reach of most buyers.

In addition, the Government’s Help-to-Buy schemes had a very strong positive influence on sales.

The combined impact of low borrowing rates and the Help-to-Buy schemes allowed thousands of first-time buyers to get a foothold on the property market.

And by doing so they stimulated demand, which pushed up prices.

This increased the return for those investors who had entered the buy-to-let market some years ago.

However, the Bank of England has introduced new measures which now make it much more difficult to obtain home loans, particularly as an investment.

Prospective borrowers will now have to demonstrate that the rental income they receive will not only cover the loan at current interest rates, but also if they rise in future.

This affordability test will prevent many buyers from entering the market.

Together these policies can only result in downward pressure on demand and, therefore, prices.

So, if you own property as an investment, it might not be a bad idea to cash in your winnings while you are still ahead.

R&T Property Solutions are here to help with that process.

We are a property investment company in our own right and take a very long-term view of price fluctuations.

Consequently, we can make quick decisions about buying your property, whether you own a single flat or a large portfolio.

We are more than happy to purchase tenanted homes and we guarantee to respect the legal rights of those tenants.

Regardless of where in Scotland your property is situated we would like to hear from you. So don’t delay, get in touch today!