Most landlords worry about Brexit impact on rental sector

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Sixty-five per cent of landlords are worried about the impact of Brexit on the private rental sector, according to new research by BDRC Continental.

The research found that the majority of landlords were “unsure or concerned” about the EU referendum outcome on the sector.

BDRC also found that 40 per cent of landlords think the result will have a negative effect on the private rental sector.

A quarter say they do not know what the impact will be.

One anonymous landlord says: “It’s difficult to plan to expand the business in a period of economic turmoil and uncertainty – not knowing how or what changes will occur with costs of borrowing, taxation, availability of labour in the building trades etc.”
Of those landlords who fear Brexit will result in a downturn in their sector, 42 per cent have a buy-to-let mortgage.

A buy-to-let landlord says: “Less EU residents means less tenants overall, so there will be more empty properties and it will take longer to find new tenants. I also think interest rates will rise so mortgage costs will increase.”

But private landlords are bullish about their own fate.

Nearly half (43 per cent) of landlords say the UK’s EU exit will have no impact on their own lettings business.

BDRC Continental director Mark Long says: “These early findings in the days immediately following the UK’s decision to leave the EU paint an interesting but mixed picture for private landlords.

“Attitudes and future intentions vary widely, with an underlying current that the only certainty is that there is no certainty. Some of the key factors that will determine how private landlords weather the storm include their exposure to EU residents and the extent to which they have strong underlying profitability across their lettings portfolios to adapt to the evolving financial landscape.

“The next quarterly landlord’s panel results in early August will provide further insights on the sentiment among the UK’s private landlords on whom much of the population relies for good quality housing.”