What the Spring Budget means for UK expats and overseas domestic investors

The spring budget did little to boost domestic confidence in the housing market, which means renters are likely to stay in the rental market longer.

Person lifting fuel pump to refuel car

With rising fuel and energy prices and record inflation, conditions are tough for domestic buyers, creating opportunities for UK expats and overseas domestic investors.

For Sale sign posted outside a terraced house in Crouch End, London

The increase in the supply of properties is already starting to be felt, with the number of homes for sale in March having increased by 3.5%.

Photovoltaic solar panels fitted to a new roof of single family homes, England

The Chancellor’s announcement has cut the cost of buying solar panels by £1,000, creating a great opportunity for UK expat investors carrying out green renovations.

We take a look at how the Spring Budget boosts investment by expats and foreign nationals in the UK by increasing rental demand and increasing the supply of accommodation.

For UK expats and overseas mortgage holders, rental income will remain strong as strong demand for rental properties puts upward pressure on rental prices.

—Stuart Marshall

MANCHESTER, GREATER MANCHESTER, UK, 5 April 2022 /EINPresswire.com/ —
With reports that inflation will average 7.4% this year, Rishi Sunak’s spring budget should help ease the effects of the spiraling cost of living. To do this, the Chancellor announced a 5 pence cut in fuel tax, a 1% cut in basic income tax (to come into effect in 2024) and an increase in the threshold for national insurance. So what does the budget mean for existing and potential investors using UK and overseas expat mortgage products?

The brief overview of the spring budget for UK expats and foreign national investors.
“Despite the announcements made by the Chancellor, the effect should be quite modest,” said Stuart Marshall. “A 5p reduction in fuel tax will help household budgets somewhat, but not enough to offset the huge rise in fuel prices. Similarly, the cut in the basic income tax rate announced for 2024 will be of little immediate use. With this in mind, the rising cost of living will continue to hit many people in the UK hard and as activity in the housing market slows and rental demand increases. This means that there will continue to be good income opportunities for investors using mortgage products for UK expats and foreign nationals due to falling house prices and upward pressure on mortgages. rental price.

Opportunities to buy using UK expat and foreign national mortgages.
As Stuart Marshall notes above, slight concessions have been made by the Chancellor, but these will do little to help offset the effects of the rising cost of living. The majority of the population is currently facing record inflation of 6.2%, soaring fuel prices and an incredible increase in the cost of energy. So, small fuel tax cuts and a planned two-year tax cut will be little comfort to many. In fact, the OBR (Office for Budget Responsibility) actually predicts that the situation will get worse with inflation peaking at 8.7% this year, despite its current 30-year high.

“The impact of the rising cost of living will contribute to higher sales, lower demand and lower prices in the housing market. There will also be a lack of confidence from domestic buyers to buy properties or trade due to economic uncertainty. The increased supply of properties is already beginning to show, with the number of homes for sale in March up 3.5%. And as that number grows and the continued tightening of budgets reduces activity in the market, prices will begin to fall. This means that UK expats and foreign national investors using the excellent range of mortgages for UK expats and foreign nationals will benefit, securing profitable properties.

Rental growth must remain strong.
Another effect of the budget’s inability to allay the fears of those feeling the pressure of the rising cost of living is continued activity in the rental market. According to Zoopla, the rising cost of living has not been significantly relieved from the spring budget, meaning renters will likely stay in the rental market longer. This is, of course, because those who rent will find it difficult to afford ownership or lack the confidence to buy given the conditions and the threat of further cost increases. Rising mortgage costs will keep first-time buyers off the ladder, and pressure on budgets will limit the number of existing owners negotiating. Also, while people are more likely to stay longer in the rental market, they are also likely to stay longer in their existing rental homes, as demand for rental homes has contributed to an average increase of 8% per year. .

For UK expats and overseas mortgage holders, rental income will remain strong as strong demand for rental properties puts upward pressure on rental prices. For those looking to make use of the wide range of mortgage offers for UK expats and foreign nationals, the combination of lower purchase prices and higher rental prices is a powerful combination for investment. “This is especially true when you take into account the unprecedented choice and flexibility of mortgage offers for UK expats and foreign nationals now available.”

The best time for green renovations.
“One of the most exciting parts of the spring budget was the announcement of the removal of VAT for energy efficient devices like solar panels, heat pumps, insulation and wind turbines. This should reduce the cost of purchasing these products by 5%. In real terms, this reduction will equate to a saving of £1,000 for those installing solar panels with an annual energy bill saving of £300. This is good news for property owners looking to undertake green renovations on their property to accommodate the new EPC rules that are coming soon. We’ve talked a lot about the need for owners to renovate their existing properties to achieve an EPC rating of C or higher. With the announced reduction in VAT on energy saving technologies, now is the perfect time to look to a new green mortgage and make use of the excellent mortgage offers for UK expats and foreign nationals available while making green renovations with the new Chancellor’s Shed.

“For potential investors, properties in need of green renovation are likely to be less sought after by buyers and therefore cheaper. However, some of these properties are highly sought after by tenants – for example, large ‘character’ properties. This will create opportunities for savvy investors to pick up a bargain using a UK expat or foreign national mortgage and renovate the property with the 5% VAT reduction. Additionally, the energy-efficient properties are highly desirable for consumers who are both more aware of their carbon footprint and looking to avoid the higher energy costs many are seeing today.

Liquid mortgages for expatriates
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Ewood, Blackburn
BB1 7AT
Telephone: 0161 871 1216

www.liquidexpatmortgages.com

For all media inquiries, please contact Ulysses Communications.
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Sergio Pani
Ulysses
+44 7811 326463
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