What Brexit might mean for landlords?
A number of Brexit-related issues are naturally causing concern for UK landlords.
Brexit trade negotiations continue with Prime Minister Boris Johnson explaining that a deal must be agreed by 15 October to ensure the UK is ready in time for the transition period which ends on 31 December 2020.
At A & A Management, we understand that tenants, legislation, tax, property prices and rental yields are constant issues for our landlords. So, what might a no-deal Brexit mean for landlords?
A Property Market Snapshot
According to a monthly poll from RICS investors, published in September in the Daily Telegraph, every part of the UK, apart from London, was experiencing growth in house prices. While the capital remained flat for the previous two months, the rest of the UK reported increases in buyer enquiries, agreed sales and new instructions.
Undoubtedly the COVID-19 pandemic has had a significant effect on the property market. In July 2020, the Office for National Statistics (ONS) reported that private rental prices paid by tenants in the UK increased by 1.4 per cent in the 12 months to July 2020. This figure was down from 1.5 per cent in the 12 months to June 2020.
Pre-COVID market activity suggested that people’s confidence was on the rise with both buying and selling properties, however the impact of lockdown changed everything.
What’s next?
As the UK continues to navigate through the pandemic, it seems for now that confidence in the property market is being restored. The end of the furlough scheme combined with rises in unemployment will undeniably have impact on the market. Finance may be harder to come by and the outcomes of Brexit will also take their toll.
If a no-deal Brexit is on the table then there will be a lot of jostling and a lot of confusion.
In this environment of chaos, it’s important to keep a clear head and a watchful eye on all political and economic developments, as well as on sector trends.
A & A Management’s message to you is don’t panic and don’t make rash decisions! We are here to ensure that you are kept abreast of any legislative changes.