Boscombe Heights, Amesbury – £139,950

Re-advertised with a new agent!

Now on the market with Fox and Sons of Amesbury, another of the cracking Boscombe Heights flats, situated on Boscombe Road Amesbury, within walking distance of nearby Amesbury Town Centre and also the amenities of Solstice Park. The block also benefits from its proximity to the A303 aswell as Salisbury City centre.


The property is immaculately presented throughout with accomodation comprising open plan Living Room/Kitchen, good sized double Bedroom along with Family Bathroom. There is also an allocated Parking Space.

We let a similar flat 12 months ago for a figure of £625pcm, at the current asking price you’d be looking at a return of 5.3%!

Give Fox and Sons a call to arrange your viewing!

3,215 Salisbury Landlords – Is This a Legal Tax Loop-Hole?

In November 2015, George Osborne disclosed plans to restrain the buy-to-let (BTL) market, implying its growing attractiveness was leaving aspiring first time buyers contesting with landlords for the restricted number of properties on the market.  One of things he brought in was that tax relief on BTL mortgages would be capped, starting in April 2017.  Before April 2017, a private landlord could claim tax relief from their interest on their BTL mortgage at the rate they paid income tax – (i.e. 20% basic /40% higher rate and 45% additional rate).

So, for example, let’s say we have a Salisbury landlord, a high rate tax payer who has a BTL investment where the rent is £900 a month and the mortgage is £600 per month.  In the tax year just gone (16/17), assuming no other costs or allowable items …

  • Annual rental income £10,800.
  • Taxable rental income would be £3600 after tax relief from mortgage relief
  • Meaning they would pay £1,440 in income tax on the rental income

And assuming no other changes … the landlord would have income tax liability’s (at the time of writing May 2017) in the tax years of …

  • (17/18) £1,800
  • (18/19) £2,160
  • (19/20) £2,520
  • (20/21) £2,880

Landlords who are higher rate tax payers are going to have be a lot smarter with their BTL investments and ensure they are maximising their rental properties full rental capability.  However, there is another option for landlords.

The Salisbury landlords who own the 3,215 Rental properties

in the town could set up a Limited Company and sell their

property personally to that Limited Company

In fact, looking at the Numbers from Companies House – many landlords are doing this.  In the UK, there are 93,262 Buy To Let Limited Companies, and since the announcement in November 2015 – the numbers have seen a massive rise.

  • Q2 2015 / Q3 2015 – 4,193 Buy to Let Limited Companies Set Up
  • Q4 2015 / Q1 2016 – 5,403 Buy to Let Limited Companies Set Up
  • Q2 2016 / Q3 2016 – 3,007 Buy to Let Limited Companies Set Up
  • Q4 2016 / Q1 2017 – 7,149 Buy to Let Limited Companies Set Up

So, by selling their buy to let investments to their own limited company, owned 100% by them, these landlords could then offset the costs of running their BTL’s as an ‘allowable expense’ – effectively writing off the cost of 100% of their mortgage outgoings, wear and tear and upkeep, letting agent’s fees etc.

I am undeniably seeing more Salisbury landlords approach me for my thoughts on setting up a BTL limited company, so should you make the change to a limited company?

In fact, I have done some extensive research with companies house in the 15 months (1st January 2016 to 31st March 2017 and 44 Buy To Let Limited Companies have been set up in the SP postcode alone).

Well if you are looking to hold your BTL investments for a long time it could be very favourable to take the short-term pain of putting your BTL’s in a limited company for a long-term gain.  You see, there are huge tax advantages to swapping property ownership into a limited company but there are some big costs that go with the privilege.

As the law sees the new Limited Company as a separate entity to yourself, you are legally selling your BTL property to your Limited Company, just like you would be selling it on the open market. Your Limited company would have to pay Stamp Duty on the purchase and if you (as an individual) made a profit from the original purchase price, there could be a capital gains tax liability of 18% to 28%.  The mortgage might need to be redeemed and renegotiated (with appropriate exit charges).

On a more positive note, what I have seen though by incorporating (setting up the Limited Company) is landlords can roll up all their little buy to let mortgages into one big loan, often meaning they obtain a lower interest rate and the ability to advance new purchase capital.  Finally, if the tax liability is too high to swap to a limited company, some savvy buy to let investors are leaving their existing portfolios in their personal name whilst purchasing any new investment through a limited company?  Just an idea (not advice!).

It’s vital that landlords get the very best guidance and information from tax consultants with the right qualifications, experience and insurance.  Whatever you do, always get the opinions from these tax consultants in writing and you shouldn’t hurry into making any hasty decisions.  The modifications to BTL tax relief are being progressively eased in over the next three years so there is no need to be unnerved and rush into any decisions before finding out the specifics as they relate precisely to your personal situation, because with decent tax planning (from a tax consultant) and good rental / BTL portfolio management (which I can help you with) … whatever you do – let’s keep you the right side of the line!

South Mill Green, Amesbury – £136,500

Something a little different to start the week!

This fantastic grade II listed former Toll House could be a brilliant development opportunity, all you need is a little imagination! The property itself is situated within the increasingly popular area of Amesbury, with amenities, great transport links and only a short distance from Salisbury City Centre.

Accomodation comprises entrance vestibule, Living Room, Kitchen/Diner, Sitting Room/Bedroom 2, Bathroom and first floor Studio Bedroom. The current dwelling could simply be updated both inside and outside producing a beautiful property, there may also be scope for extension. Planning permission was previously granted for the building of a double garage. This has now lapsed, but there is certainly potential for this to be re-obtained.

Jordan’s, the advertising agent, are hosting viewings on Wednesday’s between 16:00 and 17:00 and Saturday morning’s by appointment only. Give them a call to book your slot and assess the potential of this gem!

Council House Waiting List in Salisbury Drops by 90.3% in last 2 years

Should you buy or rent a house? Buying your own home can be expensive but could save you money over the years. Renting a property through a letting agent or private landlord offers less autonomy to live by your own rules, with more flexibility if you need to move.

Yet, there is third way that many people seem to forget, yet it plays an important role in the housing of Salisbury people. Collectively known as social housing, it is affordable housing, which is let by either Wiltshire Council or a housing association to those considered to be in specific need, at rents below those characteristic in the private rental market.

In Salisbury, there are 3,764 social housing households, which represent 19.42% of all the households in Salisbury. There are a further 1,853 families in the Wiltshire Council area on their waiting list, which is similar to the figures in the late 1990’s. The numbers peaked in 2014, when it stood at 19,122 families, so today’s numbers represent a drop of 90.3%.

Nevertheless, this doesn’t necessarily mean that more families are being supplied with their own council house or housing association property. Six years ago, Westminster gave local authorities the authority to limit entitlement for social housing, quite conspicuously dismissing those that did not have an association or link to the locality.

Interestingly, the rents in the social rented segment have also been growing at a faster rate than they have for private tenants. In England, the average rent in 1998 for a council house/housing association property was £183.08 a month, whilst today its £381.03, a rise of 108% in 19 years.

When comparing social housing rents against private rents, the stats don’t go back to the late 1990’s for private renting, so to ensure we compare like for like, we can only go back to 2005. Over the last 12 years, private rents have increased nationally by a net figure of 19.7%, whilst rents for social housing have increased by 59.1%.

So, what does this all mean for the homeowners, landlords and tenants of Salisbury?

Rents in the private rental sector in Salisbury will increase sharply during the next five years. Even though the council house waiting list has decreased, the number of new council and housing association properties being built is at a 70 year low. The government crusade against buy-to-let landlords together with the increased taxation and the banning of tenant fees to agents will restrict the supply of private rental property, which in turn using simple supply and demand economics, will mean private rents will rise – making buy to let investment a good choice of investment again (irrespective of the increased fees and taxation laid at the door of landlords).  It will also mean property values will remain strong and stable as the number of people moving to a new house (and selling their old property) will continue to remain restricted and hence, due to lack of choice and supply, buyers will have to pay decent money for any property they wish to buy.

Interesting times ahead for the Salisbury Property Market!

Down View Road, Salisbury – £167,500

Advertised with Carter & May is this fantastic Two Bedroom ground floor apartment situated within the popular area of Laverstock.

Accomodation briefly comprises large Lounge, seperate fitted Kitchen, Master Bedroom, second good sized Bedroom and family Bathroom. The property also benefits from communal gardens, off-road parking and brick built storage shed. There are 96 years left of the 125 year lease and the property incurs an annual ground rent of £10 per annum. The last service charge for 2016/17 was £146.04 which of course will effect your potential yield.

I would estimate a potential rental value of around £750pcm, meaning a potential yield of around 5.3%, meaning this would make a brilliant investment opportunity!

Give Carter & May a call to arrange your viewing!