With the election of the Conservative Government, the outcome for the property market in both sales and rentals could be a positive one.
The proposal, under a Labour Government, to remove tenant fees, extension of tenancy agreements and removal of tax relief for landlords made buy to let investors somewhat reticent to purchase. This, no longer on the horizon, combined with lower mortgage rates and rock bottom interest achievable on savings has created a renewed confidence and demand in the rental investment market.
It is also positive news as the threat of the proposed “Mansion tax” has been lifted. Overseas investors and those looking to purchase properties in the &2 million plus price bracket are now more inclined to do so after many paused awaiting the election results.
Under the conservative government further pledges were made relating to the property market:-
200,000 new homes for first-time buyers under 40 at a 20 per cent discount.
Introduction of new Help to Buy ISAs for first-time buyers to help them save for a deposit.
Opening up the Right to Buy scheme to 1.3 million housing association properties and the money raised will be spent on building new homes.
Regenerating industrial or “brownfield” sites so that 400,000 new homes can be built.
Plans to introduce a new &175,000 per person transferable allowance in inheritance tax for main residences.