Jonathan Stephens, Managing Director of Surrenden Invest, the property consultancy that focuses on high-yielding buy-to-let investments, gives his reaction to today’s Budget:
“Today’s announcements by the Chancellor will have come as no real surprise to those looking to buy an investment property in coming months. George Osborne has maintained his earlier pledge on Stamp Duty, holding strong on the changes already announced, which in turn means that those investors with their fingers on the pulse will not have experienced any kind of real shock to the system today. What it does mean, however, is that we are set to see an ever-increasing focus on the ‘Northern Powerhouse’ as the location of choice for investment properties. This Government focus on the North-West was highlighted further still today with the announcement of new road improvements in the region, along with a new tunnel linking Sheffield with Manchester. Giving the green light to the HS3 Manchester to Leeds line will also massively grow investment prospects in the Northern Powerhouse, improving transport links and high-speed travel. “I said we would build the Northern Powerhouse. We are making it a reality and rebalancing our country,” Osborne said and this can only be a good thing for those buying into the region. This does mean that the focus is very much moving away from the capital. Having ‘London’ at the end of your address should be a license to print money but the current oversupply of new build property, combined with the turmoil in the overseas market, means that the London market overall is cooling – and fast. In fact, I predict that by Christmas new build stock in London will be down by 50%. Yet this is London as a whole. There are still areas, like Ilford for example, that remain undervalued and therefore savvy investors still keen to buy in the city should look to such locations that offer low entry points and decent rental income, combined with positive future Crossrail-impacted price growth. Overall, I would say that this budget has confirmed that there is no better time to look north, however, with the dream buy-to-let conditions created for the Northern Powerhouse.”
For more information, visit www.surrendeninvest.com or contact Surrenden Invest on 0203 3726 499.