Landlords have no reason to panic following Britain’s decision to exit the European Union, that’s according to the National Landlords Association (NLA).
Following a referendum in which 52% of the country voted out – to leave the EU for good – the result has been panic in the financial markets as the FTSE was hit but has since recovered ground, and the pound continues to languish against other currencies, particularly the strong dollar.
Although it will not be clear for some time what the long-term effects of Brexit will have on the domestic property market, the NLA is calling for calm, suggesting the momentous decision may have little impact on the buy-to-let market.
Chief executive officer at the NLA, Richard Lambert, said:
“Let’s just everyone, take a long, deep, calm breath.
“Leaving the EU is completely unknown territory, and jumping to conclusions isn’t going to help anyone.
“We welcome Mark Carney’s steadying words and his reassurance that the Bank of England and the Treasury have extensive contingency plans in place.
“Any knee-jerk reaction will have a real impact on our members’ mortgages, tenants’ rents and overall confidence in the market.
“We would urge the policy as regards to interest rates should be, to continue the Prime Minister’s analogy, one of steady as she goes.”
Landlords have already been hit this year with a slew of new regulations and some punitive tax changes, thanks to the outgoing Chancellor George Osborne, including higher stamp duty, cuts planned for future mortgage tax relief, and cuts to other claimable expenses.
Combined with all this is much tougher mortgage lending criteria for second-homes and buy-to-let lending, already being implemented.
The Bank of England governor Mr Carney has said that the bank will be keeping a close watch on the buy-to-let market and levels of borrowing as a matter of routine.
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