UK landlords are unconcerned by the impending Brexit and have far greater worries about the state of the economy, tax and the political turmoil over the next several months.
An insurance company’s latest research claims 41% of landlord respondents are extremely worried about the new tax regulations and the economy with only 28% citing Brexit as a short term problem for them.
The report states that 31% of landlords are very happy with the current house price situation and 29% are pleased that interest rates are still low.
40% of landlords are extremely worried by the greater risk of prosecution especially with the ‘Right to Rent’ burden forced on them and the extra power given to councils to levy higher fines.
Landlords are only too aware that if new tenants provide false identity documents, a growing occurrence, they could face an unlimited fine and imprisonment for up to five years. 40% of landlords are also concerned by the chance that inflation could be on the increase which of course will be an extra ‘toll’ on their costs.
Apparently the survey claims that 32% of landlords are seriously considering re-mortgaging their properties, this is partly due to 58% of landlords are planning to carry out renovations and refurbishments to and in their properties.
27% of landlords are very positive that rental property demand is still at a high.
At present UK landlords do not consider Brexit as a major risk to their futures as it is not even included in their Top 10 major concerns for the short term and will not suddenly impact the market. Surprisingly 28% feel that Brexit could prove to be very beneficial for landlords.
Christina Dimitrov business manager for the insurance company, said:” ‘It’s great to see landlord’s being resilient towards the ever changing property marketplace and it’s really positive to hear they don’t appear to be worried about Brexit and the impact on demand,
She concludes: “The continued low interest rate environment can only benefit landlords and tenants. However, experts are predicting an interest rate rise in the future and the Prudential Regulation Authority’s tougher underwriting rules for buy to let mortgage lenders may bring some challenges for landlords wanting to expand their portfolios.”