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Brexit leads to a boost for the Buy to Let market

Buy-to-let activity has seen a boost in August, despite Brexit, with research revealing that buy-to-let valuations were up by 12.7% in August compared to the previous month.

From a landlord’s perspective, it has been a tough year, as the Government has introduced many changes to try and create a level playing field between homeowners and investors. These changes include the introduction of the stamp duty surcharge in April 2016 and the abolishment of the 10% Wear and Tear tax relief for landlords who rent out furnished homes has been abolished, so they can only claim the amount that they have spent. Also, mortgage tax relief is set to be phased out from 2017.

Despite these changes, buy-to-let activity has increased sharply. An encouraging economic outlook, high levels of employment and fading fears of a recession have been positively received, despite the uncertainty caused by Brexit. The Bank of England’s decision to cut the base rate for the first time in seven years also seems to have stimulated property investors.

Despite legislative changes, the buy to let sector seems to remain buoyant and resilient. Manjit Virdi, Director of Redstones says, “We are still regularly liaising with property landlords that wish to expand their portfolio, despite the political and economic climate. As well as helping them identify the right next property for their portfolio, we help them manage the often time-consuming burden of being a landlord.”

Redstones offers a wide range of property management services, from credit control to meter reading, repairs and maintenance, gas certificates and much more.

At the same time, house sellers are taking advantage of reports that house prices will increase following Brexit by getting their properties on the market. With new properties always becoming available, keep your eyes peeled on the local market by checking the search function on our website or registering your details with your local Redstones office.

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