Financial Matters

With Akwasi

Is buy-to-let still worth it in 2023?

It’s easy to have a gloomy outlook if you’re a landlord or considering becoming one. Interest rates are higher, so having a mortgage is much more expensive than it was twelve months ago. The tax position is much less favourable too. Let’s get past the bad news first – warning, there’re plenty of it!

How much tax will I pay as a landlord?

Buy to let landlords now must pay tax on their entire rental income irrespective of mortgage interest costs. Instead, landlords now receive a 20% tax credit, meaning less in tax relief if you’re a higher rate tax payer. Capital gains tax when you sell will be higher post April 2023 and higher still post April 2024. You’ll also pay 3% more in stamp duty.

How much can I borrow?

First of all, you’ll need a chunky 25% deposit, but the maximum you can borrow is linked to the rental income you expect to receive,. The lender will want to ensure that your rental income covers your mortgage repayments with a surplus of an additional 25% – 30%. You’ll also need to be earning £25,000 or more a year for most lenders to accept your application.

What are the new EPC laws for landlords?

Many would say that the final nail in the coffin comes with the new EPC rating rules which come into effect in 2025. Currently, landlords need an EPC rating of at least E to be able to rent out their property. In 2025, the qualifying band will change to C for new tenants and any existing tenancies will have until 2028 to do the same. Retrofitting homes to upgrade to the new EPC C minimum standard is unlikely to be cheap.

Is there any good news for landlords?

The property market is currently slowing as high mortgage rates and the cost-of-living bites and lowers demand from buyers. In addition to this, all the problems mentioned above have made many, who would normally be keen to get on the buy to let bandwagon, think twice. As a result, bargains abound for those with the stomach to get involved. Markets go through cycles and those who buy when times are tough tend to reap dividends when favourable times return.

What is the rental demand?

With the lustre of buy to let having somewhat faded over recent years, many landlords have decided to drop out and sell up. High interest rates have made it harder for first time buyers to get into the property ladder. The combination of these two factors means demand for rental property far outstrips supply. This is reflected in rent, which has increased by up to 30% in some parts of London. Good news for the landlord.

So, should I invest in a buy to let property?

This question isn’t as easy to answer as it was a few years ago where the answer would have been a resounding yes. There’s a lot more to consider these days. Anyone thinking of getting involved for the short-term to make a quick buck should probably walk away. Those who are in it for the long term, perhaps as a boost to their retirement income, could reap dividends. After all the concept of having rental income that pays for the majority of the cost of ownership of your property still rings true. My advice would be to consult with an expert. They would help you to get your sums right and ensure that there are no are nasty surprises waiting for you.

BabyBallet

The award winning movement to music, dance & singing programme for boys and girls from 6 months upwards run with a fun, safe and caring environment. Classes in Dulwich. Call Stephanie 07809 148348 | www.babyballet.co.uk.

Boppin Bunnies

Interactive Music class for under 5’s led by professional musicians. Monday mornings 9:30am, 10:15am & 11am. Punk Me Up Ceramics Cafe. 34 East Dulwich Road, SE22 9AX www.boppinbunnies.co.uk.

Diddi Dance

Funky pre-school dance classes for girls and boys. Learn coordination, rhythm and great moves to funky songs and boost confidence. Classes in East Dulwich, Anne-Marie for a free trial 07973 982790 | www.diddidance.com.

District & Dulwich Twins Club

Baby and Toddler Group every Friday 10am-12pm (turn up at any time!), at Peckham Rye Playrooms (SE corner of the Rye). It is for multiples only, but you do not have to be a member of the club to attend. BYO coffee cup! www.ddtwinsclub.org.

HartBeeps

Mondays at Christ Church, 263 Barry Road, East Dulwich, SE22 0JT. 10am Happy House, 11am Baby Beeps & 12.15pm Baby Bells. Fridays at Ewart Community Hub, 44 Wastdale Road, SE23 1HN .10am Happy House, 11am Baby Beeps & 12.15pm Baby Bells. http://hartbeeps.com

Little Superhero Training

Practice your Superhero moves! Discover Superhero fun facts! Any Little Heroes, Boys and Girls aged 2 - 5, Come along for a FREE taster session. Mondays & Fridays (term time only) St Barnabas Parish Hall, 23 Dulwich Village, SE21 7BT. Contact Lucy 07813 791757 | lucy@littleherocompany.com www.littleherocompany.com

Lucy Sparkles

Outstanding music, drama and dance classes and parties for young children. Fun classes where children engage with singing, movement and live music whilst enhancing learning through developing physical, emotional and intellectual skills. Tues, Weds & Fri classes for different age groups/ themes. sarah@lucysparkles.com | 07929 784 719

Nibble Arts

Are you looking for flexible 8:00 - 6:30pm school holiday childcare? We still have lots of places available at Goodrich Primary SE22 from 4th birthday to 11 - our unique creative childcare lets children explore a brandnew adventure through up to 4 creative workshops a day with industry professionals for February Half-term 14th - 18th Feb!

Children are looked after in key groups of 10 for a really personalised experience and you can request that they are grouped with friends who are also attending. We are Ofsted approved and you can book in advance up to the end of Summer Holidays 2022 1-5 days a week using childcare vouchers, tax-free childcare, card or instalment plans from £54/day. Where else can you be on video chat to an Arctic explorer live from Svalbard University one day, and meeting Sophie the giant animatronic T-Rex the next? For the full timetable and to book visit www.nimblearts.co.uk/how-our-clubs-work visit www.nimblearts.co.uk/how-our-clubs-work

Mini Athletics (SE London)

Winning the gold medal for children’s sports classes! Start your child’s fantastic journey in athletic development, designed for toddlers up to children of 7 years old. All through a fun play-based format. To try us out, contact Sam: 07811787153 | smcdermott@miniathletics.com www.miniathletics.com

Sing and Sign

Monday - Saturday. 020 7193 3696 | www.singandsign.com

Sparkle Music

Carefully structured and fun music classes for babies, toddlers and pre-school children in SE22. Check the website for current classes. Contact : anna@sparkle-music.co.uk. | 0771 1238352

Sunday Spot

Free, artist-led workshops for families at South London Gallery, 65-67 Peckham Road SE5, on the last Sunday of every month. For children aged 5–12 years with their parents & carers. Pre-booking advisable. www.southlondongallery.org

Our children’s activities pages have been popular for years and now they are back! If you run a class in any of these areas, then advertising in these pages are just for you. Each magazine has 5,000 copies which are hand-delivered every month. You can choose to go for 5, 10 or 15,000 copies, it is totally up to you. Contact Angela: angela@semagazines.co.uk for a rate card.