Following the Brexit result, UK homeowners have been left feeling a bit uneasy and unsure which way to turn. But what are the implications for landlords, or those looking to become landlords according to Mortgage Advice Bureau?
If you’re already a landlord
Be aware that first-time buyers could be holding off from buying just yet, as they may be tempted to wait and see which way the market will go during these new, untold times. However, one thing that is for certain is they will still need somewhere to live in the meantime, which could push them into the rented market, which in turn could see rent prices go up.
Likewise, if those currently in the middle of a chain get cold feet and pull out, for the same reasons of uncertainty and unease, this could move people into rented accommodation until the buying market becomes more clear and people’s worries are put at ease.
If you’re considering renting a property out
If you’re considering investing in a buy-to-let property, then it’s worth keeping a close eye on the market. Interest rates are at a record low, and have the potential to drop further so now could be an excellent time to secure your money in a property.
Although we don’t know which way the market will go yet, if house prices do fall then this could also indicate a good time to buy. Just be aware that if this does happen, you will need to act quick, so be ready with your mortgage in principal in place as this could make you a more attractive buyer, plus you will know exactly how much you will be able to borrow.
If you don’t already have it, now would also be a good time to consider taking out landlord’s insurance to protect you and your property. Some of the things you are typically covered on include:
- Non-payment of rent
- Liability for accidents
- Loss of earnings/rehousing costs
- Damage to your property
Having landlord’s insurance protects you against all circumstances and gives you added peace of mind that you will be able to keep up your monthly mortgage repayments, no matter what.
Evaluate your finances
It’s always a good idea to re-evaluate your financial position every once in a while. So if you currently have a mortgage and feel it isn’t right for you anymore, then it’s worth speaking to a mortgage adviser to see what the deals are at the moment and which of those could suit your lifestyle the most.
Speak to us
If you would like more information on the current status of the Rental Marketplace or would like your property to be managed by a licensed agent, let us know and we'll be happy to help!