Londoners still have faith in buy-to-let
Despite falling yields in the city 82% of Londoners think buy-to-let would be a good investment.
Uncertainty due to Brexit (33%) and increased tax and stamp duty rates (38%) are the main reasons Londoners are put off investing.
The research comes from Perrys Chartered Accountants.
Donna McCreadie, a buy-to-let tax specialist at Perrys, said: “Buy-to-let is still a solid long term investment despite what current market indications and the drop off in purchases might suggest.
“It’s interesting that the younger generation still sees it as a way to plan financially for the future.
“However, there are many things to consider before jumping in, including stamp duty charges, how income tax might be affected and what the return on the investment is likely to be.”
McCreadie added: “Investing in a property is a long term plan rather than a quick fix to financial freedom so it’s important to gather as much information as possible and speak to a professional tax specialist and mortgage advisor before making a commitment.”
The most likely type of property a Londoner would consider for a rental investment would be a flat or apartment, with 46% picking this option.
Some 30% would choose a two-bedroom house and 17% a house with three bedrooms or more. London is hit the hardest by stamp duty due to the higher value properties in the city.
A reduction in stamp duty and other relevant taxes (43%) would do most to encourage Londoners to buy rental property.