Investors in the UK’s private rented sector were told to look out for falling demand and drops in returns when the British public opted to vote to leave the European Union (EU) last summer.
However, a little over a year on from the vote, a new survey has suggested that the average investor is worried about other things over and above Brexit, and that the upcoming departure from the trade bloc has had little impact on sentiment.
Overall since the votes were cast last June, there has been actually very little reason for negativity in the UK’s rental market. Continued growth in price, albeit at a slower rate than enjoyed in the past, paid by tenants, and a sustained level of demand have meant that investors remain confident that the Brexit process will not damage their investments.
According to a survey conducted by Direct Line for Business, of those surveyed, only 28 per cent of buy-to-let owners are concerned about what Brexit will do to their investments in the private rented sector in the short term.
It also showed that Brexit is far from the biggest concern that investors in the rented property market have at present. According to the survey data, some 41 per cent said they are worried about the impact that the constantly increasing taxes they face will have on their investment. This group were also generally concerned about the state of the economy than leaving the EU.
Brexit is not a top 5 concern
Brexit, in fact, does not even come in the top five in terms of concerns that owners of rental market have at the moment. Other issues that people foresee being more problematic than leaving the trade block include things like overcoming competition from other landlords, which 40 per cent said is something they are keeping an eye on as investment levels rise.
The same number also said they are more worried about regulation changes than they are Brexit. Landlords have, for example, been asked to check that all their tenants have the legal right to live in the UK, and many feel this puts an unnecessary pressure on them. Many are therefore worried about the fact they face the potential of higher penalties and fines as regulations constantly change.
“It’s great to see landlord’s being resilient towards the ever changing property marketplace and it’s really positive to hear they don’t appear to be worried about Brexit and the impact on demand,” said Christina Dimitrov, business manager at Direct Line for Business.