The Property Ombudsman

Has Brexit had an impact on the UK BTL market?

Ever since the divisive outcome of the 2016 referendum, there had been much speculation surrounding the health of the UK buy-to-let property market post Brexit.

It should come as a relief to landlords across the UK that, in fact, the fallout of the vote has not had a particularly damaging effect on either rental demand or income.

The findings

A survey of over 500 landlords found that over 80% were not directly affected by Brexit or had found it to have had a positive impact on their portfolio. In addition, 63% of those asked stated they were planning to purchase another property for buy-to-let purposes over the next 5 years.

Of course, it goes without saying that the impact of the COVID-19 pandemic and subsequent lockdowns dwarfed the impact that Brexit could have had on the property market. With the property market ‘freeze’ causing huge delays in completions and a dip in property prices, focus was placed on stabilising the economy.

When it comes to mortgages, whilst a reduction in interest rates and a tightening on lending was predicted, managing the negative repercussions of COVID was the priority. As such, interest rates were set to 0.1% at the turn of the pandemic back in March 2020.  Whilst lending had been restricted, we are starting to see an increase in the number of mortgage options available to buyers again.

Confidence is high

It is no surprise that confidence is high in the buy-to-let market. Q1 of this year has seen the highest average rental yields in over 3 years – currently sitting at 6%. When combined with high levels of rental demand, we can anticipate this momentum increasing further yet.

With the Government incentives to purchase property continuing, notably the stamp duty holiday being extended until September this year saving buyers up to £30,000, investors are taking advantage of the discounts able to be attained.

In fact, overseas investors are also taking advantage of the savings on offer. Investors from overseas are now also at a five-year high, surpassing 184,000 investors. With the positive results we are seeing post-Brexit dissolving most concerns, it is becoming increasingly clear that Brexit has not had a significant effect on the buy-to-let market, or the wider property market for that matter.

Sequre Property Investment are specialists in sourcing high-income producing buy to let property investments in key areas across the UK. Check out our available investments here, or to get in touch, you can contact us here

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