The number of Brits living in private rented accommodation is higher than ever before. According to @HomeLet, “The figures suggest that the number of private tenants in the UK is currently around the four million mark and has been rising steadily since the 1980s.” This means that landlords are playing an ever more important role in the UK economy. Factors that impact on landlords could therefore affect millions of people around the country with private renters especially vulnerable to rent increases and property shortages.
Luckily for renters, it seems like Brexit, one of the most important economic changes of our time, isn’t having as much of an impact on landlords as first feared. In fact, the vast majority of landlords haven’t been deterred by Brexit at all, something that should help to put tenants’ minds at ease.
Brexit and the property market
Since the EU referendum took place in June 2016, experts in industries across the board have been waiting to see how Brexit will affect them, and the property industry is no exception. As soon as the vote result was announced, buyers, sellers and investors watched nervously for a drop in the market, and though there was a slight dip in asking prices in the immediate aftermath of the shock result, things levelled out again pretty quickly.
According to recent research, just 8% of landlords have decided to put off plans for future investment because of Brexit while 85% are undeterred by the prospect of leaving the EU. This is an improvement on the figures for last year and could show that confidence is increasing in the buy to let market.
Other factors affecting landlords
The economic factors that are worrying landlords are actually much closer to home. The recent changes that the Government has made to stamp duty rates, capital gains tax and mortgage relief rules as well as stricter lending rules for mortgages have caused up to 41% landlords to re-evaluate their investment plans. Almost all of these changes have made being a landlord more expensive and more complex. As a result, just 1% of portfolio landlords and 3% of smaller landlords consider the Government to be supportive of the buy to let industry.
However, with house prices still on the up and rents set to soar in the coming years, there is still some good news for existing and prospective landlords out there. In fact, only 3% of owners of buy to let homes plan to exit the market in the coming years while around a third plan to invest in further rented properties.
To find out more about issues affecting landlords and the wider property market, take a look around our site today.
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Written by: Andrew Page