October Property Market Update: Swindon and Farnborough Events
OCTOBER AT THE PROPERTY EDGE: MARKET INSIGHT, LANDLORD TAX AND INVESTMENT OPPORTUNITIES
October was a busy month for The Property Edge, with events in Swindon and Farnborough bringing together landlords, investors, developers and property professionals for two very different, but equally valuable, conversations.
In Swindon, the focus was on the local sales and rental markets. In Farnborough, landlord tax affairs and HMRC investigations took centre stage.
Across both events, one message was clear: property investors need to be better informed, properly prepared and realistic about the market in which they are operating.
THE SWINDON PROPERTY MARKET
Our first October event took place at the Village Hotel Swindon, where Ashley Cain joined us for a Q&A about the local property market.
The discussion explored both the sales and lettings sectors, including buyer confidence, local rental demand and the challenges currently affecting landlords and investors.
Milesh Lakhani also delivered his latest property market update, covering the proposed landlord database, borrowing costs and the effect of higher mortgage rates on affordability.
Although Bank Rate is important, it is not the only influence on mortgage pricing. Fixed-rate mortgages are affected by swap rates, which reflect market expectations about future interest rates.
This means mortgage rates can increase even when the Bank of England has not changed Bank Rate.
IS A DIFFICULT MARKET ALSO AN OPPORTUNITY?
There is no point pretending that the property market is not struggling in some areas.
Higher borrowing costs have reduced affordability, buyers have become more cautious and some properties are taking longer to sell. Sellers who need to move may therefore have to become more realistic about price.
For investors with available funds, secure finance and the ability to proceed, this could create greater room to negotiate.
However, a lower purchase price does not automatically make something a good investment. Every opportunity still needs to be assessed against realistic finance costs, rental demand, maintenance, compliance, tax and potential exit strategies.
The goal is not simply to buy during a difficult market. It is to buy the right property, at the right price, with sustainable cash flow.
Thank you to Ashley Cain for sharing his local knowledge, to Moovahome for sponsoring the evening and to the Village Hotel Swindon for hosting us.
LANDLORD TAX AT THE PROPERTY EDGE FARNBOROUGH
Our second October event took place at the Village Hotel Farnborough.
Anand Unalkat, founder of AKU Tax and a former HMRC officer, joined us for a live Q&A about landlord tax affairs and property-related tax investigations.
Anand has more than 20 years of experience dealing with tax investigations and complex tax matters. Having previously worked inside HMRC, he now helps individuals and businesses respond to enquiries, make disclosures and resolve tax issues.
The discussion covered areas including:
Undeclared UK rental income
HMRC’s Let Property Campaign
Voluntary disclosures
Overseas property income
Capital gains arising from property sales
Incomplete or inaccurate records
Allowable expenses and missed reliefs
The consequences of waiting for HMRC to make contact
WHY LANDLORDS SHOULD REVIEW THEIR TAX AFFAIRS
Rental income is taxable, but calculating rental profit is not always as straightforward as subtracting expenses from rent received.
Confusion can arise around mortgage finance costs, jointly owned property, repairs versus improvements, overseas income and which expenses can legitimately be claimed.
Small mistakes can become significant when they continue over several tax years.
If rental income has not been reported correctly, seeking professional advice and addressing the position voluntarily may provide more control over the process. Waiting for HMRC to discover an issue can lead to additional interest, higher penalties and considerably more stress.
However, a proper review is not only about identifying tax that may be owed. It could also uncover allowable expenses, carried-forward losses or reliefs that have previously been missed.
Good records are essential. Landlords should retain clear evidence of rent received, invoices, bank statements, professional fees, repairs, insurance and other property-related expenditure.
MORTGAGE RATES ARE MOVING BEFORE BANK RATE
Milesh’s Farnborough market update looked beyond the usual house-price and rental statistics.
One of the most important developments has been the movement in swap rates and fixed mortgage pricing, despite Bank Rate remaining unchanged.
This matters because landlords and investors should not assume that mortgage rates will remain stable until the Bank of England makes its next announcement.
Those approaching the end of a fixed-rate period should review their options early. New purchases should also be stress-tested against higher borrowing costs rather than relying on the most attractive rate currently available.
In a volatile mortgage market, access to finance can change quickly.
MORE THAN PROPERTY NETWORKING
The Property Edge was created to offer more than a room full of people exchanging business cards.
Our events bring together investors, landlords, developers, brokers, accountants, architects, surveyors, trades and other property professionals in a relaxed environment without the hard sell.
The aim is to share useful information, encourage honest conversations and help people build relationships that continue beyond the evening itself.
WHAT’S NEXT FOR THE PROPERTY EDGE?
Our next events are:
Thursday 12 November
Thursday 19 November
Full event and guest details will be announced shortly.
Join The Property Edge mailing list to hear about new events and guest announcements before they are shared publicly.
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