Tag Archives: brexit
Buy to let property investors in UK still positive post Brexit
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… Continue reading
EU citizens renting homes in UK concerned about Brexit effect
Over 30% of European Union (EU) citizens living in the private rented sector in the UK say they are worried that the result of the referendum will make it harder for them to rent a home. Some 31% expect difficulties and 25% are worried that landlords will be less willing to rent to non UK nationals due to Brexit, according to the latest survey from the National Landlords Association (NLA). The poll found that 18% of private renters, approximately two million people, are EU citizens who currently have the right to freedom of movement within the EU. However, there are concerns about whether or not EU citizens will be able to remain in the UK if the right to freedom of movement is removed or restricted during the process. ‘These findings show that a significant proportion of tenants from the EU are genuinely concerned they’ll have to uproot themselves from their work, studies, or friends and family on the strength of the referendum result,’ said Richard Lambert, NLA chief executive officer. ‘There is still a great deal of uncertainty surrounding the referendum, but we want to reassure European citizens living in the UK it’s simply not the case that landlords will stop letting to them just because the country has decided to leave the EU,’ he pointed out. ‘However, if the right to freedom of movement within the EU is curtailed during the exit negotiations, then landlords may have no other option than to end tenancies rather than facing fines and even jail time if they let property to someone without the legal right to remain in the UK,’ he added. Continue reading
Demand continues to fall in prime central London property market
Although the wider UK property market is yet to suffer any detrimental impact from Brexit, London’s prime market is seeing demand continue to fall, the latest index suggests. In the £1 million plus sector in London demand has fallen by 10%, the lowest level on record and a further drop since demand cooled following April’s changes to stamp duty for buy to let and second homes purchases. The data from the prime central London property index from hybrid estate agent eMoov shows that the five areas where demand is at its lowest are Mayfair at 3%, St Johns Wood, Knightsbridge and Belgravia all at 4% and Fitzrovia at 5%. The index, which records the change in supply and demand for property above £1 million by monitoring the total number of properties sold in comparison to those on sale, shows that some 75% of London’s most prestigious locations have seen demand remain static or drop since the second quarter of the year. Indeed, the only places to have seen a positive uplift in demand for property over the last three months are Holland Park at 44%, Marylebone at 38%, Notting Hill at 17% and Primrose Hill at 9%. Notting Hill is also fourth hottest where demand levels are concerned, currently at 14%. With Belsize Park enjoying the highest demand across the prime central London sector at 18%, followed by Islington at 17%, Chiswick at 15% and Holland Park at 13%. According to Russell Quirk, eMoov chief executive officer this slowdown was always likely to happen as these areas of London rely heavily on high end foreign investment and second home visitors to survive. ‘Whilst the rest of the UK market seems to be ticking along with little impact as of yet, the immediate weakening of the sterling and negative response from the rest of the EU seems to have had an instantaneous knock-on effect on the prime central London market,’ he said. Continue reading
