Buy to Let Investment from 2017
..and why the Government wanted you to stop!

Many individuals have dabbled in the UK's buy-to-let housing sector over the last 25 years and many that have chosen to invest in this sector have seen favourable returns, far outweighing more traditional, passive investment opportunities.

​In more recent years we've seen government intervention aimed at removing the incentive for private investors to participate in buy to let investment, primarily through a punitive tax environment aimed at pushing private investors out of the marketplace.
​There are some good motives for this, perhaps primarily the shared concern that many of us now have that younger people have been priced out of the housing market driven by a large and ever-increasing demand for housing in the UK and the limited increase in supply of new homes year-on-year.

​This, inequity in supply of housing and demand from would-be occupiers combined with an additional demand from well-funded buy to let investors has led to established buy-to-let investors beating first time buyers in a bidding war, at least, more often than not.
​With recent changes to stamp duty land tax, mortgage lending criteria and changes to the way rental income and loan interest is treated for income tax purposes, especially for the investor paying tax at a higher marginal rate, it seems clear that the government is set on largely nudging the high earning private investor out of the residential property sector.

Alternative Property Investment Opportunities in the UK
and obstacles to entry to these markets

Of course, the residential sector is just a part of the larger UK property market. There are many millions of square feet of pubs, restaurants, shops, offices, warehouses, car showrooms, petrol filling stations, old people's care homes, hotels and car washes all over the UK. Someone owns each one. Many are owned by pension funds and high net worth individuals.

Investors might decide to participate relatively passively through investment in a publicly listed property company or a property fund or index traded on FTSE. Alternatively, investors may decide to take a more proactive role and invest specifically in their own investments or private companies with specific investments in need of funding. The risks associated with each will vary considerably.

As with the residential buy-to-let sector, the investor might be just that, a speculative investor, or alternatively he/she might decide to add value through development. In either case there is a need for market awareness, and some technical skills, knowledge, time and funding.

How can BCO help me in this new marketplace?

At BCO we have over 20 years experience in the identification of new investment and development opportunities for private and corporate clients. Our principal, Mark Burkes, was instrumental in the expansion of the occupational portfolios of many household names including KFC, Travelodge, Harvester, OK Diner, National Tyre Services and many others. He's also managed a variety of mixed use developments with net worths ranging from £250,000 to £100M. 

​As part of a new service, 2020 will see us launching a new private mentoring service aimed at private individuals new to the commercial property sector. We charge a modest retainer and in return we'll walk you through the investment and development process, working with you. We can even help you to choose the right funding partner and other specialist consultants, as necessary.

​For a summary of what we provide as part of our mentoring programme click here.
Initially we are opening the mentor programme in the Summer of 2020 and strictly limiting availability to just six private clients.
Contact us for an initial chat with no obligation.