THE APPEAL OF THE UK HOLIDAY LET

I know how difficult it is to plan ahead at the moment and how the booking of any holiday may still seem a little presumptuous. However, after seeing a couple of back-to-back days of sunshine I’m sure I’ve joined the vast numbers of people across the UK in thinking – if only.

With the vaccine programme speeding ahead, there is growing optimism that some kind of travel will be permitted sooner rather than later. The popularity of breaks within the UK is set to continue with staycations – or simply holidays as I like to call them – likely to remain high on the agenda of many people, if and when they are allowed.

ADDITIONAL SUPPORT NEEDED FOR TENANTS AND LANDLORDS

The UK Government has recently announced that the ban on evictions in England is to be extended until the end of March. This means that eviction notices – which could have started again on 22 February – cannot be served for another six weeks. The eviction ban had already been extended from 11 January when it was originally due to expire.

The only tenants that will be allowed to be evicted using bailiffs before 31 March will be those that cause the greatest strain on landlords or residents and neighbours. Exemptions include cases of illegal occupation, anti-social behaviour and arrears of six months’ rent or more.

LANDLORDS CONTINUE TO DISPLAY A CONSIDERED APPROACH TO PROPERTY INVESTMENT

Although the world continues to change, the fundamental principles underpinning the private rented sector remain. Despite talk of a mass exodus from urban districts, according to new research from Paragon Bank, over two-thirds of landlords will continue to look for property in such areas for their next portfolio purchase. 36% plan to buy in a suburban area and 6% are looking at rural locations. 66% of landlords said they plan to buy in the same area as their existing properties, with 10% targeting new areas. 20% said it would be a mixture of both.

THE CHANGING LANDSCAPE FOR THE SELF-EMPLOYED

Following Kensington’s successful webinar on self-employed mortgages which took place earlier this week, Frances Taylor, Head of National Accounts, reviews some of the findings.  

As we start the new year with a return to nationwide lockdown, we’re all hoping it’s the final addition to this particular trilogy.

The mortgage industry has seen immense change over the last 12 months and with the uncertainty prompted by the pandemic set to extend into 2021, we wanted to kick off the first of our webinars this year by addressing a topic that we’re seeing real demand for more information about: mortgages for the self-employed.

Market insight

TO INCORPORATE OR NOT TO INCORPORATE

The growth in the appeal of limited company lending has been evident since 2016 when the 3% investor stamp duty surcharge came into force and the proportion of tax-deductible mortgage interest on buy-to-lets held in personal names began to be phased out. In fact, since the beginning of 2016 and the end of 2020, more companies were set up to hold buy-to-let properties than in the preceding 50 years combined.

This progression was recently highlighted in research from Hamptons which showed that there were a record number of new limited companies set up to hold buy-to-let properties in 2020. Last year there were a total of 41,700 buy-to-let incorporations, an increase of 23% on 2019. The numbers have more than doubled since 2016, rising 128%. This means that at the end of 2020 there were a total of 228,743 buy-to-let companies up and running, an all-time record.

HERE'S TO A MUCH MORE POSITIVE 2021

I’m sure we’re all glad to see the back of 2020 but there’s no getting away from the tough start ahead of us in 2021.

Although, I refuse to be too downbeat. So, let me take this opportunity to wish you all a happy New Year and try to inject a little optimism.

The fact is we are all better placed, practically and hopefully mentally, to deal with some short-term hardships and we have to keep reminding ourselves that there is certainly plenty of light at the end of the tunnel.

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