Commercial investors now face the challenge of a levelling off, if not a fall, in the rents achievable in London and the South East, whilst the compression of yields continues in this sector. The drop in the value of Sterling has added an additional challenge to local investors competing against those using funds from overseas.
Furthermore, the impact of Brexit on tenants’ ability to generate the profits to pay rents, combined with the increase in rates in London from April 2017, is also a concern for investors in offices. Other areas, including logistics sites and student accommodation, create other opportunities – and other issues.
Residential investors are also facing challenges. The low rental yields in many areas of London, combined with the changes in the tax deductibility of interest paid from 2017, are making many investors review their investment portfolios and assess whether they need to reduce their gearing, or even exit the market completely.
How we can help you
We provide the full range of services to property investors, including:
- Audit and accounting
- Corporate tax planning and compliance
- Capital Allowances and Remediation Relief Claims
- VAT advice
- Personal and Partnership tax planning and compliance
- ATED Returns
- Non Resident Landlords Returns
- Company registrations and company secretarial services
- Payroll, including benefits reporting
Members of the Kingston Smith property team keep in touch with market developments and work hard to ensure that our clients are immediately advised of any changes in tax legislation which may impact them. Our team enjoys working with clients when they are considering investments, and can help by assessing the impact of VAT, as well as both corporate and income taxes in a commercial context on the proposed investment.
Our clients include Groups with significant property portfolios, as well as individuals with ambitions to grow their property investment business.