The Irish Sunday Times interviewed Simon McDonnell for his thoughts on the forthcoming UK budget and how it will affect investors. Here is an excerpt from Sunday’s article:
Simon McDonnell, a Dublin director of Findlay Property (127.0.0.1/oldfind), which specialises in finding and managing investment properties for Irish clients in London, says: “Irish tax residents will not be affected, because they are exempt from capital gains tax in the UK. This could give Irish buy-to-let investors the edge over their UK counterparts.
“I’m not sure whether an increase in capital gains tax will be as significant as some sections of the British media expect. Interest rates, unemployment and availability and flow of credit are going to be far more important.”
The proposed tax increases and last month’s scrapping of Home Information Packs — reports which vendors had to provide at their own expense — made experts wonder what was in store for the
“These dual factors will bring more property to the market and with it a little nervousness,” says McDonnell, adding that uncertainty could be played to Irish buyers’ advantage.
“Uncertainty in the market will throw up opportunities for investors. There could also be an increase in rents and yields, as investor presence in the market becomes much more income driven
rather than led by capital gains.”
McDonnell says that London has been traditionally strong with Irish investors and landlords because of its rental record. “The continued net migration of people into London, the challenges in the planning system and the lack of green- or brown-field sites to develop limit the supply of property and will continue to exert upward pressure on rents in central London,” he says.
SOURCE: Irish Sunday Times