Experts warn impact of Brexit only just beginning

Jessica Nangle

July 7, 2017

The referendum result back in June caused a rift of uncertainty across the mortgage industry, however property experts believe the true impacts of the result are only just beginning.

Nick Marr, co-founder of TheHouseShop.com, said: “In 2017, many of these same issues have become unwelcome and long-lasting hangovers for landlords, as the true impact of the Brexit vote and Section 24 tax changes are only just beginning to bite.”

Landlords have been adjusting to a slower rise in property prices since the result.

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Martina Lees, The Accidental Landlord, added: “Uncertainty around Brexit is adding to a general economic slowdown.

“This means you should not depend on a quick return from buying and selling, unless you are able to buy far below market value in the first place.”

The risk involved with this uncertainty has also had an impact on property investors, who are given an option to wait or try to capitalise on lower property prices.

Richard Blanco, professional landlord and property investor, argued: “Uncertainty around Brexit, the economy and the government’s policy towards housing and the private rented sector continue to cast a shadow over property investment.

“Investors could either see this as a time to hold and wait and see or try to snap up a bargain.”

These thoughts come as landlords have made numerous calls for a reversal of the stamp duty changes according to latest surveys.

Mark Lawrinson, regional sales director at Portico Estate Agents, said: “Brexit came at a time when the market was already beginning to suffer as a result of the SDLT changes in 2014.

“The market was simultaneously suffering from a severe lack of house building which was causing property prices to rocket – in fact, there were just 32,000 affordable homes  built in the year to March 2016.”

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