The looming shortage of housing has motivated the Government to look at giving tax advantages to institutional investors to encourage them to become professional landlords.
The Treasury is considering giving ‘bulk discounts’ on stamp duty for bulk buying of property in addition to removing barriers on REITS (Real Estate Investment Trusts).
REITS were set up to encourage residential property investment but there has been little take up and the Government is now looking at ways to make this form of investment more attractive.
I won’t go into detail on the Government proposals – but the implication of these proposals is clear. The Government is acknowledging that the looming housing shortage must be addressed and institutional investment in buy to let and new house starts encouraged.
The bigger picture is that buy to let investment is being encouraged. Yet more good news for property investors!