There has been much debate about what Brexit will mean for the property market and the economy as a whole, but how will it affect property investors?
Landlords seem to be firmly in one of two camps. Some worry about reducing their exposure to the UK property market, while others are of the opinion that huge buying opportunities are on the horizon.
It is supposed that fewer migrants will lead to reduced demand on the housing market, providing landlords fewer opportunities to rent out property. Whatever your view, the perceived massive under-supply of housing, coupled with mortgage restrictions and high prices, are likely to continue to buoy the rental market and further support it.
The number of tenants wishing to rent houses or flats in order to maintain flexibility is increasing. The old adage ‘a job is for life’ no longer holds water – and changing jobs and moving is easier if you are not bogged down with a mortgage.
The rental market may well remain strong, but the game will become tougher – with increasing taxation, stricter lending and new regulation such as MEES. The shortage of Buy to Let properties has also been intensified by some landlords selling up due to high stamp duty costs and the phasing out of mortgage relief.
Curiously, there is likely to be a decrease in supply and increase in demand for all rental property, whatever happens in terms of Brexit, reflecting changes being caused more by our own government and nothing to do with our position – in, or out, of Europe.
RW/LCB