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Insight & Opinion

UK property investments remain very positive in the month post-Brexit

Author: Gemma

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In the lead up to the referendum in June regarding the UK’s membership of the EU, it was believed that UK property investments would be potentially affected should the electorate vote to leave the single market.

However, despite this becoming a reality on June 23rd, there has yet to be any sign that property, and particularly the rental sector, will see any of the changes that were forecast.

In fact, the underlying strength in the British rental market, spurred on by the demand from tenants and the continued growth of generation rent, means that investors in UK property investments remain very confident about the market’s prospects.

Data has shown that investors are still happy to put their money into the private rented sector as a result.

UK Property Investments Positive Post-Brexit

According to the latest survey of property professionals from Shawbrook Bank, there has only been a slight fall in overall confidence since the start of 2016.

At that time, some 59 per cent of property investors were confident about the lending environment and their ability to invest as a result.

By the middle of the year this had fallen only slightly by just 2%.

Perhaps even more surprisingly, now that the uncertainty over the vote has been lifted, there are more people looking to purchase buy-to-let properties than there were at the start of 2016.

In January, some 56 per cent of property investors were looking to add to their portfolios, but this has risen to 58 per cent post-Brexit vote.

UK Property Investments Positive Post-Brexit

Positive Market for Landlords

For landlords, Brexit may present some challenges however, what is clear is that the rental market now has such strength behind it.

Those working within it believe it can overcome any adversity and still deliver them the returns to which they have become accustomed.

“It is encouraging to see sustained confidence in the lending market since the beginning of the year at a time when the sector has seen a great deal of change,” said Stephen Johnson, deputy chief executive officer and managing director of property finance at Shawbrook Bank.

“Seeing this optimism reflected in investors’ plans to acquire new buy to let properties is a promising sign that the specialist market shows no signs of slowing despite uncertainty. At Shawbrook, we have not yet seen any real change in customer behaviour and there is still a great deal of activity across the commercial business,” he added.

As the dust has settled since the result of the vote was announced, UK property investments remain a stable option for investors.

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