Solicitors are noticing a slowdown in instructions due to the number of mortgages being approved dropping to the lowest rate for two years.
London and more generally the United Kingdom has always offered superb investment opportunities for foreign property buyers. It is therefore important to appreciate the various taxes that could be levied against you:-
1) Inheritance Tax 2) Capital Gains Tax 3) Annual Tax for Enveloped Dwellings – a tax on companies that own properties used by their owners 4) Income Tax 5) Stamp Duty Land Tax
A competent property solicitor would be able to advise you on how to minimise these potential liabilities.
The office property market is going strong with new developments underway. Hedge fund involvement has been observed in the City with joint ventures between British property developers with those in the Far East such as Singapore. The total amount of offices being built is at a record high.
The fall in the number of construction contracts has been evidenced by a 25% insolvency increase in building firms since the pandemic.
Escalating inflation, delays in significant infrastructure projects, a drop in the construction of new homes and the cost increments of materials are the chief culprits here.
Flat sales in London are up nearly a quarter compared to pre-pandemic conditions and house sales are showing a smaller yet still significant increase. In prime central London renters are being forced to pay more as there are fewer deals on offer, with particular demand in up to two bed properties. Suburban rents have increased even more so.
New leases and renewals are being reported by some of the commercial property mega corporations with rents holding firm even though foot fall remains slightly subdued due to hybrid working. Recent builds especially are of interest.