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.
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.
Ying Tan is managing director of the Buy to Let Club