Posted by Admin - 17/08/2016
It’s clear to see the outcome of the EU Referendum has divided the nation. The tabloids have been full of the potential positives and negatives that are yet to come due to the decision to leave, but no one seems to have a definitive answer.
Here at 9yds we have decided to let you know some reasons why the Brexit may be good for landlords.
If property prices were to drop then you can anticipate for some lucrative property transactions. The reason for the house prices dropping is due to uncertainty which is mainly just conjecture. It is likely that a lot of sales will fall through because of this, so maintain relationships with estate agents so that they can contact you should an opportunity arise.
For those landlords who provide short-term lets and holiday let owners in the UK the Brexit could also be very beneficial to you. The pound is weaker than usual therefore, many people may opt to holiday within the UK rather than travel abroad.
The likelihood is demand for rental properties will increase due to the uncertainty previously mentioned people may choose to postpone buying a property and decide to rent somewhere instead. An increase in demand will ultimately lead to a rent payment rise which will ultimately mean that landlords will have a larger choice of tenants.
With the uproar regarding ‘tenant tax’ (formerly known as clause 24), landlords and tenants across the UK are hoping that new Prime-Minister Theresa May will have a much better understanding of the implications this could cause than David Cameron. The hope is that the new Prime-Minister will at least remove making it correlate to those who have already invested in buy-to-let.