Real estate is real property that consists of land and improvements such as buildings, fixtures, roads, structures, and utility systems. Property rights give title of ownership for land, improvements, and natural resources such as minerals, plants, animals, water, etc.
It comprises of four sub sectors – housing, retail, hospitality, and commercial. The growth of this sector is well complemented by growth in corporate environment and demand for office space as well as urban and semi-urban accommodations.
The UK real estate sector employs more than half a million people and generates more than £68 billion a year. Despite the Covid crisis, the real estate industry is continually growing. The UK real estate market is estimated to be worth more than £5.75 Trillion.
Importance of the Real Estate Industry
Broadly speaking, real estate includes physical surface of the land, what lies above and below it, what is permanently attached to it, plus all the rights of ownership—including the right to possess, sell, lease, and enjoy the land. The UK real estate sector employs more than half a million people and generates more than £68 billion a year. Despite the Covid crisis, the real estate industry is continually growing. The UK real estate market is estimated to be worth more than £5.75 Trillion.
IMPACT ON ECONOMY
Real estate plays an integral role in economy. Residential real estate provides housing for families. It’s the greatest source of wealth and savings for most people. Commercial real estate, which includes apartment buildings, creates jobs and spaces for retail, offices, and manufacturing. Real estate business and investment provide a source of revenue for millions of people.
THE RIPPLE EFFECT
Construction is the only part of real estate that is measured by GDP. But real estate affects many other areas of economic well-being that aren’t measured. For example, a decline in real estate sales eventually leads to a decline in real estate prices. That lowers the value of all homes, whether owners are actively selling or not. It reduces the number of home equity loans available to owners.
NATIONAL DEVELOPMENT AND PROGRESS
The real estate sector is responsible for the development of infrastructure of a nation. A functioning and efficient real estate sector dictates the pace of progress of a state. Real estate developers profit by adding value to land such as creating buildings or improvements or re-zoning and taking a risk in financing a project. Progress is also defined by cultural progress, a big part of which is developing areas of a country that lag on the economic front. Thus, the real estate sector is literally the life blood of modern economies.
Real estate represents an attractive asset class for institutional investors such as pension funds, insurance companies and sovereign wealth funds. Not only does this maximise investment opportunities and returns for pensioners and savers from around the world, but it also makes large urban regeneration projects possible, such as at Battersea Power Station and Greenwich Peninsula. Overseas investors are attracted to the UK by its political stability, robust legal system, high-quality assets offering good long-term return opportunities, and a relatively benign tax environment.
What Our Clients Say
Lanop understand that accounting is time-consuming for business owners, like me – and they’re dedicated to alleviating this burden. They first helped me with a tax return in 2011, so the fact they now run all of my accounts, both personal and professional, speaks volumes. “I can’t recommend them highly enough”.
Partner and President, 3rd Home
Role of Accountants in the Real Estate Industry
Accounting is the art of recording and reporting on financial transactions. Accountants are concerned with tracking and reporting the financial transactions of a business. They are responsible for managing general ledger, cash flow management, collections, recognizing revenue, analysing profitability, reporting earnings, managing debt, and paying taxes of course.
Financial services firms need to fill roles like financial reporting accountants, auditors, bookkeepers, accounts receivable clerks, accounts payable clerks, controllers, treasurers, and tax accountants.
Typically, the entire accounting organization will report to a Chief Financial Officer as well.
- An accountant will identify potential deductions throughout a fiscal year and advise on how to make strategic decisions for year-end deductions.
- An audit can easily be avoided if you get the guidance and counsel of an expert accountant year-round.
- Investing in and engaging a professional accountant as an ongoing tactical business advisor will assist owners in maintaining focus on long-term goals.
- A collaborative approach toward an accountant, allows make decisions based on data and takes advantage of a consultative relationship that will help make business decisions in a timely fashion.
- The biggest benefit of hiring an accountant is getting advice on how to plan for the future. They can pull reports from the past and examine the seasonality of a business. This helps determine the best time to buy inventory, and budget for big investments so that it can stay competitive and viable.
Lanop Accounting services for the Real estate Industry
CAPITAL & OPERATIONAL EXPANDITURES BUDGETING
CASH FLOWS & REVENUE FORCASTING
TAX PLANNING FOR THE COMPANY & DIRECTORS
PROPERTY VAT ADVIICE & PLANNING
STAMP DUTY LAND TAX (SDLT)
OWNERSHIP OF PROPERTY
Why is Lanop the Best Accountant for Real Estate Developers?
For development, sale, and acquisition of property, real estate developers require advice and support from financial experts. Lanop delivers unmatched services when it comes to real estate accounting, whether it’s a domestic buy-to-let investment, a part of an investment portfolio, or just an acquisition to accommodate growth in business.
At Lanop we ensure that the buyer is being steered in the right direction by advising them on various tax reliefs while purchasing property, such as SDLT, so they can save money and not spend an extra penny on stamp duty.
Our specialised advice on rental income and capital gains tax statements, as well as assistance in anticipating optimum investment opportunities for real estate development through meticulous business structure analysis, is the best deal in town. Lanop ensures deadlines are met, and penalties are avoided by preventing delays in submission and preparation of tax statements for individuals and businesses owing and submitting taxes on commercial and residential property.
We work with a variety of property categories, such as landlords, property developers, residential properties, commercial properties, and subletting. We handle all the details so you can focus on your business. Call Lanop right now and become part of our expanding portfolio of high-end real estate developers.
Lanop: Because Land is Our Mother
Lanop Accountants eliminates the need to search for an all-encompassing accountancy firm. Our corporate headquarters in Putney, London provide practical and efficient solutions to all your accounting needs.
Our skilled tax and finance professionals work diligently to make your life simpler by reducing financial stress and making business models more lucrative and efficient in accordance with up-to-date regulations.
Why should you choose us?
Professional & Client Centric
No Surprise Costs
In-house Team of Experts