X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Buy-to-Let

    10 reasons Brexit could be good for landlords



    There's naturally a lot of doom and gloom around Brexit.  We are in unchartered waters for both the economy and the property market, and that understandably causes uncertainty.

    However, it might pay to take a leaf out of Baron Rothschild's book:



    While Rothschild made a fortune buying in the panic that followed the Battle of Waterloo against Napoleon, we can apply his saying to economic uncertainty as well.

    Here are 10 reasons why Brexit might be good for landlords:

    1.  If prices drop because of Brexit uncertainty, then there may be property bargains to be had. It would certainly be worth negotiating hard and using Brexit as a bargaining point.  Many sales may also fall out of bed, so make sure you keep in touch with estate agents and let them know that you can step in.

    See - Property Tribes Top 10 resources to find discounted property deals

    2.  It is likely that the Bank of England will reduce the base rate in the near future, potentially meaning improved cash flow for landlords on SVR's.

    See - Bank of England Chief Economist hints at interest rate CUT! 

    3.  As BTL lending activity has dropped significantly since the stamp duty surcharge kicked in and there will likely be a further drop through Brexit, lenders will be enticing landlords with attractive rates.

    See - Lenders slash BTL mortgage rates to tempt landlords 

    As we untangle ourself from EU legislation, we may also find our mortgage market is freed of EU interference.

    4.  As the pound is weak, more people will wish to holiday in the U.K., which is good news for U.K. holiday let owners, and those offering Serviced Accommodation and short term lets.

    See - Short term letting strategies - understanding the differences

    5.  If cheaper mortgage products appear, there may be opportunity for landlords to refinance and improve their bottom line.

    See - FREE portfolio review by Property Tribes Financial Services 

    6.  There may be an increased demand for lettings as people who are uncertain about the market decide to let rather than buy until the dust settles.  This may also mean that tenants want to stay for a number of years while they decide if they are going to buy their own property.

    7.  If those landlords who are fearful exit, it may mean that rents rise on the back of No. 6 combined with decreasing supply.

    8.  Increased demand and reduced supply may mean that landlords who remain in the game have a greater choice of quality tenants.

    9.  The resignation of David Cameron may mean that we get a new Chancellor or a Prime Minister who understands the implications of Section 24 and who may at least remove making it retrospective to landlords already invested in BTL.

    You can perhaps influence this decision by writing to your MP and asking them to support only "Leave" candidates, which may mean that Osborne doesn't get a look in!

    See - Lord Flight - Tory MPs don't even understand the implications of Section 24 

    10.  The U.K. property market is under-pinned by strong fundamentals that are not largely affected by Brexit and these will continue to ensure that it remains robust when taking a long term view.

    See - 9 irrefutable reasons why property remains a viable investment

    What other advantages can you think that Brexit might bring to landlords?

    I believe that the landlords who keep calm, keep their powder dry, keep informed, and don't panic will see opportunity no matter what the market conditions. Smile

    A round-up of our Brext-related discussions:

    How will Brexit affect your property plans? 

    Brexit - impact on property market

    Why did the UK really vote to leave the EU?

    Osborne facing calls to resign

    Developers enjoy biggest gains since Brexit 

    Would you withdraw from a sale because of Brexit?

    1
    0

    Some additions courtesy of the Residential Landlords Association:

    There is a raft of PRS legislation on the cards from the Housing and Planning Act and Immigration Act.  Can the Government find time to implement these changes?  Will proposed changes to mandatory HMO licensing also bite the dust?

    Climate change has driven many EU regulations, and legislation affecting energy and environmental measures will need to be revisited including VAT on energy saving materials, EPCs, and the heat network regulations.

    A large amount of consumer protection legislation affecting the PRS is also EU led, including protection from unfair trading which is key for property buyers as well as tenants as it deals with all aspects of property misdescription.

    Full/source article 

    See - What will happen to EPCs?

    0
    0

    I agree with the RLA's John Stewart to a point. Anything that is already an act of parliament, including the Housing and Planning Act 2016 and Immigration Act 2016, is likely to stay. Proposed legislation might be shelved, though.

    A lot of EU legislation also comes in the forms of directives, rather than regulations. EPC legislation is one such example. EU directives are transposed into UK law, so there will be no need to 'unpick' them.

    Basically, I don't see parliament creating more work for itself than is necessary!

    0
    0

    Writer: Commercial Trust Limited Follow us on Twitter: @CommercialTrust Please note that anything I write is for information purposes only, and not to be construed as advice. Commercial Trust is regulated and authorised by the Financial Conduct Authority. Registration number 610175.

    Opportunity.

    If you can’t hear it yet then listen a little closer because it’s about to come knocking.

    It’s interesting how people differ in their opinions towards “BREXIT” and what some see as inevitable doom. The FTSE & Currency markets in turmoil and the end of days is the prediction of some whilst others are adopting a wait and see attitude.

    Incidentally the FTSE 100 was up at PRE BREXIT levels yesterday. A point somewhat ignored by the Remainers.

    History has shown us many things. It consistently shows us time and time again, crisis after crisis, downturn after downturn, doomsday prediction after doomsday prediction that there are three people types of people.

    • People that do nothing. Those that wait for someone else to go first.
    • People that do nothing. Wait for someone to go first, wait, wait and several years’ later despair about missed opportunities. Obviously promising themselves that next time it will be different.
    • People that DO. People who while others wait and ponder, DO and reap the benefits.

    It has been said that the most successful people we meet fall into the latter category.

    Before you judge the above statement and disagree wholeheartedly it may well be that acting now and seizing an opportunity just ISN`T right for you at this time. There could be hundreds of reasons why. It doesn’t make me wrong or you right.

    However, I think what separates the first two categories from the last is very simple. KNOWLEDGE. These clients KNOW all of these things

    • How much they currently borrow
    • What the interest cover is on each property
    • What products they have, what interest rates and when they expire
    • How much equity they have in their portfolio and individual properties
    • Whether they have the best rate they could have at this time
    • They know which rates and products need to be reviewed 6 months before they expire
    • They know potentially how much they could borrow
    • They have identified what areas of the market they want to concentrate on
    • And so on ………………….

    So let’s assume that the new tax changes and “BREXIT” lead to further concerns in the market. The landlord who got into property because everybody else has decides he wants out. How quickly does that individual want out? How desperate is that individual for a stress free, quick and efficient end to his property project?

    How about you meet that individual this afternoon. It’s the sort of property, in the right area and at the right price that you want. It’s perfect.  ARE YOU IN A POSITION TO MAKE THAT INDIVIDUAL AN OFFER?

    What if you have been working for years to build a portfolio and you feel that it is getting more and more difficult. The portfolio that you started to build as your pension and for the benefit of your children when you’ve gone?

    How about saving £10,000, £20,000, £50,000 on mortgage facilities over the next 15 or 20 years? Would it make a difference?

    The one above always makes me laugh actually. What’s £10,000 over 20 years someone will say?  That same someone that will spend 2 or 3 weeks looking to save £2.99 a month on their mobile phone contract.

    If Opportunity knocks make sure you can at least open the door and hear what he has to say. If you don’t, he will only go next door and so on until he finds someone who will.

    Let’s chat about what we can do to help you.

    Mark Alefounder

    07716647928 mark@ptfs.co.uk

    2
    0

    Mr Mark Alefounder

    Mortgage & Protection Broker

    Optimum Independent Financial Advisers

    Mobile 07716 647 928

    Tel: 01206 366700

    http://www.optimum-ifa.co.uk

    The financial regulator, the ‘Financial Conduct Authority’ designates that there are two different types of financial advisers, ‘independent’ and ‘restricted’. The status of an adviser firm will affect the type of advice that is given. A restricted adviser firm can only recommend certain products or product providers, whereas an independent adviser firm, such as Optimum, is able to consider and recommend all types of retail investment products and/or providers that could best meet clients needs and objectives. Optimum Independent Financial Advisers offers genuine unbiased and unrestricted advice.

    Your home may be repossessed if you do not keep up repayments on your mortgage.

    Optimum Independent Financial Advisers is authorised and regulated by the Financial Conduct Authority

    Financial Services Register Firm Reference Number (FRN): 223293

    © Copyright 2017 Optimum Independent Financial Advisers. All Rights Reserved

    The BBC are promoting Teresa May and it is as if the other candidates don't exist!

    This is reason alone for me not to want May as PM.

    We need a strong leader who was in favour of Brexit who will see it through.

    Who is your favourite candiate and why?  I think the choice is pretty poor.

    0
    0

    I think we have some very good candidates, though I was sorry to see Boris pull out.  Andrea Leadsom is an interesting addition.  She has a very strong finance background and strongly opposed GO on C24 and his landlord attacks. She also gave aa very positive interview with Iain Dale.

    I am fed up with hearing people in power talk about the obstacles we face.  They should turn this around and discuss the vast opportunites now we are not bound by the EU and can make advantageous trade agreements with the whole world.  Negativity can make recession a self fullfilling profecy whereas showing the positives can entice investment to the country and promote growth.

    Let's stop talking about "little britain" and realise we are now part the world community and without the constraints of "little europe" we can aim to become Great Britain once again.

    0
    0

    Excellent post Paul.  I am not going to investigate Andrew Leadsom. Smile

    There is so much opportunity, as you say, but the media is continuing to only report all the negativity. Sad

    0
    0

    Paul why where you sorry to see Borris pull out? Can you actually see him leading this country? I definitely can't. He is likeable and has proven with Brexit he can win campaigns but leading this country is a whole other ballgame.

    I used to be of the idea that our new PM should be pro-brexit, however now I don't see it as neccassary. Anyone that becomes PM will be aware of the stuggles ahead so as long as they have an understanding of a) what has happened and b) what needs to happen, that is the main thing. That is a true leader, one that can lead any side, regardless of which camp they voted for. For that reason, I think Theresa May is right for the job. Her views seem the most sensible and has the country's interests at heart. I don't see much ego or self-gain in her approach.

    0
    0

    Whilst I can see many problems with Boris I think he deserved a shot at the job due his vigourous campaigning and successes with London elections (tradiionally Labour).

    I also think Teresa May would make a very capable Prime Minister but not sure how electable she would be in a general election (last thing we want is for Labour to get  in).  I have the same feelings about Gove... very capable, good negotiator but not a real vote winner amongst the wider electorate.


    0
    0

    Boris will be back for the general election, that seems obvious to me as the whole game.

    0
    0

    Andrea Leadsom seems excellent, real economics and business knowledge rather than just soundbites. Would be respected by freinds and foes alike. Would be comitted to the Leave project and keen to put her money where her mouth is. And not one of those Oxbridge political obsessives who have been planning their political carear since A Level.

    0
    0