BREXIT- HOW WILL IT AFFECT LETTINGS?
The British public have decided and we are leaving the EU, but how will that affect lettings?
Here at Oulsnam Lettings, we don't think Brexit will actually have that much of an impact on the lettings market. Let's face it- lettings has been strong for a long time, facing off the 2007/8 recession and has been steadily growing for years. In actual fact, most estate agents now rely on their lettings division to be their reliable source of income, particularly in times of uncertainty. This is worlds apart from the likes of the 70’s and 80’s when 'Lettings' was thought of as much more of a sideline.
Oulsnam Lettings have the following predictions for the market in the coming month:
- We will see an increase of foreign investors looking to buy in the UK due to sterling loosing value
- There will most likely be a short term dip in the sales market when uncertainty will ripple throughout the economy. Less houses may be sold but it is unlikely to affect houses.
- The buy to let market will regain some strength following the April changes. Canny investors will no doubt take advantage of the uncertainty in house housing market and make offers that are much more likely to be considered than previously.
It is important to remember- there is an element of control that can be kept throughout all this uncertainty. Our economy is in a much better place than it was before the last recession and Britain has one of the strongest major economies in the world. Currently our employment levels are at a record high and the banks are 10 times stronger than they were at the time of the last credit crunch according to George Osborne.
In terms of how rent levels will be affected- we don't think there will be a noticeable impact. There may be an impact on London rents where prices have risen dramatically due to high demand. That demand may become less in the future as they have a large amount of non-UK born citizens living there and a likely change in migration policy may well affect this. It is not anticipated to affect any other areas dramatically.
If we can hold our nerve we will get through this and hopefully we can work to keep the property market strong. For those investors who are most driven by capital growth this is of course very important. For those investors looking for high yields, the next few months may well be the perfect opportunity to negotiate a good deal.