BTL sector in healthy shape as investors seek stability post-Brexit
- 23rd December 2016
- Buy-To-Let Property News
Landlords continue to be optimistic about property investments amidst regulatory and political changes
2016 has been an eventful year – some might even say too eventful!
However, despite the June vote by the UK to leave the European Union and the potentially disruptive introduction of higher Stamp Duty on buy-to-let (BTL) properties and other tax changes, the BTL market has remained strong.
In August purchasing activity in the BTL market surged, with a 13% increase on the month before. Meanwhile, ludlowthompson that month recorded one of its busiest Augusts in terms of lettings to date.
This continued high level of performance has been largely supported by ‘generation rent’. Young people have continued to flock to London for education and employment purposes, many intending to rent throughout their time in the capital on long-term leases.
Against this backdrop, according to a survey, three-quarters of landlords were either more or equally likely to increase their property portfolio, following Brexit.
One key reason for this is the stability BTL property investments are likely to offer, whilst the UK agrees the terms of its impending departure from the EU. With high levels of long term occupancy at market rents Buy-to-Let is set to hold firm whilst other forms of investment may well be spooked .
Stephen Ludlow, chairman at ludlowthompson, comments: “It is now almost six months on from the decision to ‘Brexit’ and although there is huge uncertainty over what is going to happen next, the BTL market remains in remarkably healthy shape.
“This is a trend strongly supported by ‘generation rent’ which continues to offer BTL investors the stability that could begin to falter in other areas of the market as ‘Brexit’ negotiations get underway."
It is now almost six months on from the decision to ‘Brexit’ and although there is huge uncertainty over what is going to happen next, the BTL market remains in remarkably healthy shape.
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