"Some of the key factors that will determine how private landlords weather the storm include their exposure to EU residents and the extent to which they have strong underlying profitability"
In the wake of the UK’s decision to leave the EU, 40% of landlords believe that the result will have a negative effect on the private rental sector, with a quarter (25%) saying they are uncertain what the impact will be.
Concerns raised included less overall tenants, rising mortgage costs, and decreasing house prices.
One landlord said: “It’s difficult to plan to expand the business in a period of economic turmoil and uncertainty – not knowing how or what changes will occur with costs of borrowing, taxation, availability of labour in the building trades etc.”
Another added: “The EU referendum has affected the financial markets. If this continues, it will affect interest rates, which for those buying on a mortgage is scary. I am fortunate as I have no mortgage, but unstable financial markets affect the whole economy.”
Of those landlords who fear Brexit will result in a downturn in their sector, over four in 10 (42%) have a buy-to-let mortgage.
Of the 43% who say the EU exit will have no impact on their own lettings business, the majority did not have a BTL mortgage.
Mark Long, Director at BDRC Continental, said: “These early findings in the days immediately following the UK’s decision to leave the EU paint an interesting but mixed picture for private landlords. Attitudes and future intentions vary widely, with an underlying current that the only certainty is that there is no certainty.
"Some of the key factors that will determine how private landlords weather the storm include their exposure to EU residents and the extent to which they have strong underlying profitability across their lettings portfolios to adapt to the evolving financial landscape.”
