Brexit – what it means for landlords…
Following on from last month’s blog asking what Brexit means for tenants, this month we focus on what it might mean for landlords.
There are a number of ways in which landlords could potentially be affected by the UK’s decision to leave the EU, but as we previously mentioned, no-one can predict what will happen until Article 50 has been triggered and the UK begins formal negotiations. Even then, it will not be possible to say for sure exactly what the implications might be.
With this in mind, preparation is key, therefore, below, we have listed a few ways in which landlords could potentially be affected over the course of the next few years.
The biggest worry is that Brexit could mean a period of economic uncertainty and this will have a negative effect on the rental market. Lenders may not be quite as prepared to part with their money. This could affect buy-to-let lending availability making it much more difficult for landlords to find finance.
This could also weaken house builders, causing them to build less and not meet shortfalls in housing, driving property prices upwards.
Alternatively, a curb in immigration may mean that there is less demand for rented accommodation. This could drive prices down, bringing with it the possibility of landlords finding themselves in negative equity.
Another way in which landlords may be affected is through changes in legislation. As the UK leaves the EU, a number of EU laws affecting the property rental sector will need to be repealed or replaced. It is impossible to predict how these may change, but it certainly has the potential to change the way the market operates.
As before, the bottom line at this stage of the game is that nobody knows for sure exactly what the potential changes might be or to what extent they will affect the market. With this in mind, our best advice is to once again remain calm, carry on and make preparations to soften the blow of any negative impacts.
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If you are currently looking to let a property and would like to discuss your options in more detail, please call one of our expert advisors.