Landlords have no reason to hit the panic button following Brexit
Monday 18 July 2016
Landlords have no reason to hit the panic button following Britain's decision to quit the European Union, the National Landlords Association (NLA) has said.
Following the referendum, in which 52% of the country voted out, the decision has rattled the financial markets as the pound continues to struggle against the dollar.
But while the full, long-term effects of the huge decision are yet to be felt or even known, the NLA is calling for calm, suggesting the move may have little impact on the buy-to-let market.
Chief executive officer at the NLA, Richard Lambert, said: "Let’s just everyone, take a long, deep, calm breath.
"Leaving the EU is completely unknown territory, and jumping to conclusions isn’t going to help anyone.
"We welcome the Mark Carney’s steadying words and his reassurance that the Bank of England and the Treasury have extensive contingency plans in place.
"Any knee-jerk reaction will have a real impact on our members’ mortgages, tenants’ rents and overall confidence in the market.
"We would urge the policy as regards to interest rates should be, to continue the Prime Minister’s analogy, one of steady as she goes."
Landlords have already been hit with a tighter scrutiny on taxes thanks to the Chancellor George Osborne, including higher stamp duty and cuts planned for mortgage tax relief.
In addition, tougher criteria for second-home mortgage lending also looks likely to be implemented.
Meanwhile, Bank of England governor Mark Carney says the bank is watching the buy-to-let market - but there was no hint at any further lending legislation being introduced.
He said the bank was keeping a close eye on the levels of borrowing as a matter of routine, but it had been brought sharply into focus following the referendum result last month.
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