View more on these topics

Buy-to-let Watch: Keep calm and you will carry on

Tan-Ying-Speaking-2013-700.jpg

The buy-to-let sector has already weathered some major challenges and it will not be beaten by the EU vote fallout

The events of the past couple of weeks are like no other we have seen in our generation. From the moment the UK woke to the news that the people of Britain had voted to leave the EU, it seems the country has descended into chaos.

I rarely discuss my political views in such a public forum (except to say I firmly believe Westminster should limit its involvement in the housing market or, at the very least, seek the opinions of those operating within it before acting) and I will maintain this stance today.

So rather than go into the pros or cons of the Brexit decision and my views on it, let me instead say simply this: the UK housing market is one of the strongest and most successful in the world.

Strong nerves
Buy-to-let investors in this country are made of strong stuff (they have had to be of late) and have just the right appetite for risk.

The housing market, though it may stumble a little, will not be rocked to the core by this. House prices will not drop at terrifying rates. Banks will not shut up shop and call it a day.

Buyers will not all suddenly back out of transactions and spend their deposits on a one-way trip to Australia. In short, let’s not lose our heads, people.

Yes, we may see buyers become a little cautious, perhaps waiting a short while until the chaos calms down. Indeed, we may well see a boost in tenant demand as those who were planning to buy their own home decide to rent for a little longer while any uncertainties surrounding their employment are ironed out.

Yes, house prices may dip a little as a result of the unknown. The past few years have shown us how prone prices are to fluctuation. Yes, it may take a little time for the dust to settle. But settle it will. And the housing market will be there, just as strong and just as successful, when it does.

This is a market that has gone through – and survived – one of the worst financial meltdowns there ever was. We have already faced difficult times. The buy-to-let sector is currently facing even more challenges, which will have much harsher consequences than Brexit will. But it is facing them head-on.

So, howerver you voted, let’s now come together as a market and focus on the future. The housing market may wobble but it will bounce back. Do not allow yourself to get caught up in the chaos.

BTL rates

Ying Tan is managing director of the Buy to Let Club

Recommended

Whittaker_David_2015

Buy-to-Let Watch: Landlords on ‘pause’ until 24 June

Remortgaging volumes are propping us up as some landlords lock in to a fixed rate ahead of any potential Brexit mayhem The Council of Mortgage Lenders’ lending figures for April make pretty sobering reading for the buy-to-let industry. Landlords borrowed £2.5bn – down 65 per cent month-on-month and 7 per cent year-on-year. This equated to […]

Rising-House-Prices-Property-Ladder-700x450.jpg
1

CML: Buy-to-let lending drops 65%

Buy-to-let borrowing dropped 65 per cent between March and April, according to figures from the Council of Mortgage Lenders. The data shows that landlords borrowed £2.5bn in April, down 7 per cent year-on-year. This came to 16,100 loans in total, down 64 per cent compared to March and down 10 per cent compared to April […]

Bank-of-England-BoE-Building-Horse-700x450.jpg

BoE: Buy-to-let lending outstrips first-time buyers

Buy-to-let mortgage borrowing has outstripped first-time buyers for the first quarter since the crisis, according to new figures from the Bank of England. New buy-to-let mortgages were 21.1 per cent of all lending in the first quarter, while first-time buying was 16.9 per cent. Remortgages were 25.3 per cent of all lending, other mortgages made […]

Stop letting targets get in the way of delivery

The positivity at RESI was pleasing to see, with lots of encouraging discussion about the private rented sector (PRS), the possibility (or hope) of stamp duty cuts on the way in the Autumn Statement and the general prospects of residential property in this post-Brexit vote world. However, that positivity was often tinged with some negativity […]

Guide

Guide: 10 required letters — what to send, to whom and when?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. The topics in this guide include: the letters you need to send out; what to send and when; the importance of employee engagement; and what to consider as additional communication.

Newsletter

News and expert analysis straight to your inbox

Sign up