Build Magazine June 2015

Build Magazine 43 he Conservative Party have won a majority in the UK general elec- tion. Property expert Simon Morris discusses what this means for the property investment option policies the Tories said that they would implement, such as the ‘Help to Buy ISA.’ In the 2015 budget, UK Chancellor George Osborne announced a new policy for the UK residential property market called the Help to Buy ISA, which is designed to help first time buyers get onto the property ladder. Osborne said that the new ISA wrapper would launch in autumn 2015 and it would allow first time buyers to save £200 a month from the taxman. The government said that they would give people 25p for every £1 they save in a Help to Buy ISA, up to a maximum of £3,000 for £12,000 stored in the account. The account will have a minimum require- ment of £1,000. As a result of a Tory majority, Simon Morris commented that this means the Help to Buy ISA will become law immediately. “We couldn’t have predicted this. Every poll sug- gested that there’d be no clear winner on 7th May and the strong surge of the SNP in Scotland indicated that Cameron’s Conservatives might have been locked out of the halls of power all together in favour of a Labour-SNP coalition. “This means that the Conservatives have a clear path to implement their vision for the UK’s property market. In the run up to the national poll the Tories outlined a number of policies designed to boost the UK’s residential sector including intentions to build 200,000 starter homes in England by 2020 and the Help to Buy ISA. “The Help to Buy ISA in particular has the potential to make the UK’s residential sector a more attractive property investment option. The fact that it’s designed to help people save will persuade more first time buyers to purchase a home and inject capital into the market.” Morris continued; “As an ISA wrapper, the Help to Buy ISA can be a lucrative investment option when property bonds and funds are used within it. This strategy allows investors to capitalise on tax advantages. “I would recommend that investors research any potential in-direct property investment option and choose a regulated product before they commit if they want to reap healthy returns. I would advise investors to use the serviced of an Independent Financial Advisor where property investment products are concerned. An IFA will weigh up their appetite for risk against their expec- tations concerning yield to show them the right financial product for their circumstances.” The property expert added; “I’d also advise those thinking of investing in property to read the free guide to property investing in 2015 before making up their mind on how to invest. This guide was written to provide private and commercial investors with the information they need to ensure they are making the right enquiries before they take out any financial product.” To read more about Simon Morris please visit his blog: http://www.simonmorrisuk.com The Guide to Property Investment 2015 can be downloaded below: http://www.simonmorrisuk.com/guide-to-property-investment-2015/ What Does the Tory Victory Mean For Property Investment Options? T