A survey of landlords has found that a majority of them said that Brexit and other political changes have not affected their business.
Immediately following Brexit, there was financial uncertainty, and it was predicted that many landlords would not purchase more buy-to-let properties. A survey carried out by Simple Landlords Insurance in October 2016 discovered that only 9% are postponing expanding their property portfolio.
Tax relief on mortgage interest rate is being cut, and abolished altogether in 2020. More than two thirds (70%) of landlords said that the tax reductions would not stop them expanding their properties. Anoter 12% were uncertain when they would purchase more properties, and 8% are selling at least one of their properties.
One fifth (20%) of landlords are raising rents next year, which could cover the loss of tax relief.
Though the survey reveals that the majority of landlords are confident they still have concerns. Only 39% say that they are apprehensive about further tax changes, while 58% are anxious about more legislation.
Jenny Mayes of Simple Landlords Insurance said:
“While some landlords are adopting a cautious wait and see approach and slowing down their investment, others see opportunity in the changes and the vast majority want to keep or grow their property investment.”
The online property organisation Rightmove reported in October 2016 that inquiries on its website from buy-to-let investors had increased by 30% between June and September 2016, which confirms the optimism that the Simple Landlords Insurance survey found. Commercial mortgages rates are low, which helps finance buy-to-let property deals.