Landlords could take advantage of a faltering house-building market
Saturday 06 August 2016
Landlords could take advantage of a faltering house-building market as the UK construction industry took another hit on stock market.
Fresh data from the FTSE 100 showed that July's reading of the UK construction purchasing managers' index (PMI) was the lowest it has been since 2009.
Market declines also led to the manufacturing sector, which accounts for around 10% of the UK economy, suffering its steepest fall in over three years.
The overall drop has heightened fears that Britain is set to slump back into another recession as it struggles to recover from the last.
Brexit is being blamed for the slump as confidence continues to waver following the EU referendum result.
Economist Chris Williamson said: said: "The surveys signal the steepest fall in business activity since April 2009, the turnaround in the index being the largest ever deterioration recorded since the surveys began in 1997.
"While we remain cautious about reading too much into the survey signals from months in which both political and economic uncertainty was so intense, the data raise the prospect of the economy sliding into decline in the third quarter and entering recession."
The news will only serve to deepen an industry already in crisis with Britain already struggling to build enough homes for the ever-expanding population.
And while fears of a new depression become more prevalent, it could actually provide those in the buy-to-rent sector with an opportunity.
If construction companies are unable to continue building new homes, demand for rental properties are certain to rise, with demand certain to outstrip demand.
It seems like a strange silver lining for landlords who have felt the wrath of the Government over the past year with hikes on stamp duty and tax increased.
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