Property prices are climbing back toward boom levels, according to consolidator index compiled by Assetz and is not falling as reported by the latest Halifax property index.

 

Assetz amalgamates data from five of the leading house price indices, including Financial Times Acadametrics, Rightmove, Nationwide, Halifax and Communities & Local Government.

Stuart Law, chief executive of Assetz,comments on Halifax May's House Price Index, Halifax reports that house prices are 16% below their 2007 peak but the average shows that it is closer to 6.7%. Suggestions by some critics of a slowing market are merely opinion and this is not evidenced in the data as house prices continue to recover.

He explained that the difference between Nationwide showing a rise (+.5%), and Halifax showing a fall, was a result of the ‘smaller' data sets used to calculate results.

 

The rumour of increased Capital Gains Tax on the sale of BTL property seems of little concern to professional landlord/investors.  

 

The jury is still out on the definition of what is a Buy-To-Let property. Her Majesties Customs and Revenue (HMRC) want it defined as residential for tax purposes but even the Financial Services Authority (FSA) define BTL as commercial.  Whatever the outcome of the lobby of the National landlords Association (NLA) to keep BTL commercial for tax purposes, landlords it seems, take the view that some tax is inevitable on any UK investment.  

 

With a property portfolio however, one can defer CGT almost indefinitely whilst enjoying good income along the way. When compared with stocks and shares, most landlord/investors view property as something to hold on to with real capital growth potential over the medium to long-term.  Plus of course, a healthier than average income stream. 

Where else, said one landlord/investor recently interviewed, can I use someone elses money (a Lender),to leverage my own cash?  Where else, can I use some elses money (the tenant) to service my debt on my growing asset? Where else, can I offset interest on my loan against income tax with the Chancellors blessing?  Where else, can I offset wear and tear against income tax? 

 

What We Say ~ When comparing property returns to stocks & shares over any medium to long term period, there is not much between them, which says volumes about the robustness of property as an investment.  Property, as an immovable asset maintains a higher degree of integrity over the stock market too: no-one can run off with your investment!

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