Little
more than four weeks after the UK vote to leave the European Union the private
rented sector is forecasting a brighter future of renewed property investment. And the
promise of a more stable government is giving new hope for private sector
tenants and landlords as well as the wider property market. We are already seeing renewed interest in
property investment and equally high demand from tenants, so the indications
are that money invested in property will continue to work harder than in many
other investment vehicles, where returns can be poor.
Following
‘Brexit’ there may still be unanswered questions, and potential nervousness.
For instance: the need for more clarity
on the future of EU nationals who have settled in the UK. Many such tenants and
workers in the private sector are waiting anxiously for reassurance.
But, in the meantime, the Bank of England has
pegged the base interest rate and given landlords the hope that it will not
increase in the immediate future indeed even hinting at a drop in interest
rates. And interest
in tracker mortgages is soaring to a new level, too. So the safer haven of ‘bricks and mortar’
looks set to continue as a much less volatile asset.
However
no Brexit result is going to change the fact that we have a serious housing
shortage in the UK. Although the property landscape varies from region to
region, the fundamental problem is that we still don’t have enough homes to
satisfy the extremely strong demand from tenants who prefer to rent and not
enough new homes are being built. This
never more true than for Milton Keynes where the demand for homes is even
greater than ever.
Theresa May has already said she will remain
true to the government’s committed house building policy but the confidence of
property investors in the last 12 months – from first-time
buyers to experienced landlords –
has been badly knocked. The previous administration’s cut in mortgage interest
tax relief meant a bigger tax bill for landlords so the Chancellor’s future
approach to property taxation is going to have an all-important impact on our
future.
So far, since the referendum vote, the
initial dark clouds of uncertainty are giving way to more favourable signs of
government stability and a more promising future for the property market in
general and the private rented sector in particular.
We can only hope to see a continuing boost to property
sales, purchasing and investment that creates renewed confidence in homes that
will increase, not decrease, in value.
However
no Brexit result is going to change the fact that we have a serious housing
shortage in the UK. Although the property landscape varies from region to
region, the fundamental problem is that we still don’t have enough homes to
satisfy the extremely strong demand from tenants who prefer to rent and not
enough new homes are being built. This
never more true than for Milton Keynes where the demand for homes is even
greater than ever.
Theresa May has already said she will remain
true to the government’s committed house building policy but the confidence of
property investors in the last 12 months – from first-time
buyers to experienced landlords –
has been badly knocked. The previous administration’s cut in mortgage interest
tax relief meant a bigger tax bill for landlords so the Chancellor’s future
approach to property taxation is going to have an all-important impact on our
future.
So far, since the referendum vote, the
initial dark clouds of uncertainty are giving way to more favourable signs of
government stability and a more promising future for the property market in
general and the private rented sector in particular.
We can only hope to see a continuing boost to property
sales, purchasing and investment that creates renewed confidence in homes that
will increase, not decrease, in value.
If
you are thinking of getting into the property rental market as a new investor
and don't know where to start or what to look for locally, speak to us for
impartial advice and guidance to get the best return on your investment. For
more information about other potential investment properties that we could
introduce you to, or to ask about our thoughts on your own investment choices,
call us now on 01908 562582 or send us an email.
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