The combination of rising demand for rented accommodation, tax incentives and the continued scarcity in the housing market is once again making investing in new construction a particularly interesting option.
Tax benefit: 6% VAT for investors
The government encourages redevelopment projects via a reduced VAT rate of 6% on demolition and reconstruction. While previously this only applied to individuals moving into the property themselves, investors can now also benefit from it, provided they meet certain conditions:
- The property must be let residentially for at least 15 years
- Or rented to a social housing company
This tax advantage significantly reduces entry costs and offers investors an opportunity to bolster their returns, especially in a market that is cautiously gaining momentum.
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