Is Brexit uncertainty good news for landlords?
Brexit uncertainty could spell good news for private landlords as more people choose to rent than risk entering the property market.
Property experts believe that in turbulent times people defer major purchases like buying a property and most commentators are predicting modest, single-digit house price growth in 2019.
An upward trend in rental values isn’t likely to change anytime soon, nor will the demand for private rental properties, experts say.
A rise in interest rates from the current near all-time lows, coupled with high deposit levels, makes home ownership affordability even more of a challenge – especially for first-time buyers.
The average monthly rent of £921 (£763 when London is excluded from the UK) in December 2018, shows a rise of 1.5 per cent against last year, or £14 per month.
Without a large deposit, those entering the property ownership market could face longer-life mortgages, with many providers now extending their maximum term on mortgages to 40 years.
Fresh data shows the average age of a tenant today is 32 years old – making it a real possibility that those same people may be dealing with a mortgage that matures post-retirement.
Although private landlords have been buffeted by a perfect storm of increased taxation and more regulation a recent survey of 2,900 private landlords showed that nine-out-of-ten landlords intend to either keep or expand their portfolio in the next year, despite one third also expressing their concerns of the potential implications of Brexit.