In this quick, two minute read we look at what the recent budget announcements mean for Landlords in Portadown, Craigavon & Lurgan.
On Thursday, the new Chancellor Rishi Sunak announced his budget, which for residential Landlords was very little to get excited about. It contained nothing of interest to Landlords or the lettings industry in general.
The only item of interest is the announcement of a two percent surcharge on the purchase of UK / NI investment properties by non-resident overseas investors. This new surcharge is due to come commence in April 2021.
If this new surcharge starts to deter overseas investors, it could mean more opportunities for local Landlords to invest in providing more homes for the every-growing list of tenants needing somewhere to live.
The Good News
The good news was the Bank of England announced that they would introduce an emergency cut in interest rates in an attempt to boost economy as a result of the effects that Coronavirus could have.
The Bank of England reduced rates from 0.75% to 0.25%, reducing borrowing costs back down to the lowest ever recorded rate in history.
It’s a drastic move, but should help promote mortgage lending and make it cheaper to finance a property purchase. But there is a downside… it is almost pointless saving money in a bank, which is probably what the reduction is designed to do – to get people spending, rather than saving.
To find out more information about how the budget announcements could mean to your property investments and the local property market just give us a call.