From Robert Ulph on April 23, 2021
Following last month’s decision to leave Capital Gains Tax (CGT) as it is for property and not use it – as some had speculated – to help plug some of the financial gap left by the impact of Coronavirus, there has been even greater relief for what it means for the private rented sector.
It means that capital gains are still available to landlords at previous rates. However, with the boom in property it also means that with the current market and annual price rises of around 9% that the gains are increasing.
According to a piece of research by Hamptons it appears that the number of properties sold by landlords last year was 131,900, which was the smallest annual figure since 2013. In addition, the average landlord who sold up in England and Wales last year had owned their property for just over nine years and sold for 42%, more than they paid for it. This was the first annual rise for five years.
As we have experienced here in Suffolk, demand for desirable country property is increasing far greater as tenants are looking to move out of cities, which is having an impact on asking rents as more rental property becomes available.
Lockdown has meant those looking for a change of lifestyle are looking to places like Suffolk more and more as a desirable permanent move. Locally we have access to beautiful countryside, wonderful parks and open spaces. This has meant that exercise and enjoyment of the outdoors has been possible.
There are also factors around how we will be working going forward and with the increased acceptance of working remotely and ability to work from home, means more space is sought and again Suffolk has great attraction.
There are also the commercial aspects locally too with Felixstowe, for example, continuing to be a major factor in Suffolk’s success as one of the biggest and busiest ports in the world and contributing hugely to the local economy. The same with the booming technology sector in Suffolk.
Ipswich Waterfront will continue to be a real asset to the town and we look forward to when the restaurants and hotels will be packed again every night. The University will continue to go from strength to strength and we are fortunate to have a wide range of leisure, arts and other entertainment locally too, so once back up and running, the area has something to offer everybody.
Suffolk has always been a great place for families and it is interesting to see how family living could significantly change after lockdown. Parents and grandparents could look to move to be closer to their families and settling in Suffolk in their later years has appeal too, with the pace of life and quality of living they are looking for.
As always please do not hesitate to contact me as I am happy to help with any advice on our local property market.