Taylor Scott International News
Confidence in the lending environment remains unchanged for buy to let property investors in the UK after the historic vote to leave the European Union, according to new research. The survey, which explores the views of property professionals in the wake of the UK’s decision to leave the EU, reveals that some 57% of property investors are feeling very confident or fairly confident about the lending environment over the next six months, compared to 59% in January 2016, the latest survey of property professionals from Shawbrook Bank shows. It says that this confidence is reflected in the proportion of investors looking to buy an additional buy to let over the next year at 58% compared with 56% in January 2016, and suggests Brexit has not had an immediate impact on people’s future investment plans and their attitudes towards buy to let investing. However, while Brexit may not have de-railed investor plans, it is still cited as the biggest challenge this group will face over the next year, according to 32% of investors. While 44% remain unsure of what impact Brexit will have and how the subsequent changes to property prices and market competition will impact them, 42% think the result will negatively impact property investors. Only 14% believe the result will have positive implications. Similarly, property investors are feeling a lot less confident about the prospect for the UK economy with 48% of investors fairly concerned or very concerned about the economic outlook, an increase of 19% from six months ago. Some 54% of investors are more negative in their outlook and believe that falling house prices would be the main negative consequence while 23% think it will be decreased competition. In contrast, 37% of those that predict positive outcomes see decreased competition in the market due to uncertainty as the main positive consequence, 24% cited less regulation and red tape while 20% said falling house prices. Property prices are one area which property investors expect to see significant changes over the next six to 12 months. In January 2016 some 67% of property investors predicted a small increase in property values and 6% predicted a small decrease. The latest figures reveal that 42% are anticipating a small decrease in prices and only 21% are predicting a small increase over the next 12 months. ‘As a lender, it is encouraging to see sustained confidence in the lending market since the beginning of the year at a time when the sector has seen a great deal of change,’ said Stephen Johnson, deputy chief executive officer and managing director of property finance at Shawbrook Bank. ‘Seeing this optimism reflected in investors’ plans to acquire new buy to let properties is a promising sign that the specialist market shows no signs of slowing despite uncertainty. At Shawbrook, we have not yet seen any real change in customer behaviour and there is still a great deal of activity across the commercial business,’ he explained. ‘While the aftermath of… Taylor Scott International
Taylor Scott International, Taylor Scott
