Though there has been financial uncertainty in the property market following the Brexit vote, property experts predict that there is a positive future for the buy-to-let market.
According to an August 2016 article on ResidentialLandlord.co.uk, a few high street banks, including Barclays and TSB, have reduced buy-to-let lending. This has caused pessimism from some people concerned about the state of the buy-to-let market. However, many independent lenders have reported strong recent business in buy-to-let mortgages.
Peter Armistead from Armistead Property, which is based on Manchester is optimistic about the buy-to-let market. In the ResidentialLandlord.co.uk article, he is quoted as saying:
“The buy-to-let market is strong and continues to provide essential housing for a growing UK population.”
He said that around two million people in Britain are private landlords, and together they own more than five million properties.
There is a growing demand for rental properties and a shortage of rented accommodation in many areas of the country. Experts like Armistead say that this means that the buy-to-let market keep providing good investment returns.
Estate agent Countrywide, according to a LandlordNews.co.uk article from August 2016, has forecast that property prices will fall in 2017, though by only 1%. They should then rise again in 2018 by around 2%. Interest rates on commercial mortgages for buy-to-let property are low.
Commenting on this, Armistead said:
“Buy-to-let investors who are in a position to buy now could benefit from not only low mortgage rates, but lower property prices.”