Brexit has not dented buy-to-let investor confidence

by: Edward Murray
  • 16/08/2016
  • 0
Brexit has not dented buy-to-let investor confidence
Brexit is a storm cloud on the horizon rather than a present problem for property investors, according to research from Shawbrook Bank.

The lender’s latest Client Barometer research found that 57% of investors felt confident or fairly confident about the lending environment over the next six months despite the vote to leave the European Union. This compared to the 58% recorded in January 2016.

The percentage of investors stating their intention to purchase additional buy-to-let properties actually rose and now stands at 58%, compared to the 56% figure noted in January.

Stephen Johnson (pictured), deputy chief executive officer and managing director of property finance at Shawbrook Bank, said the findings showed that investors with a robust business model in place could still prosper, despite the uncertainty created by the referendum result.

He said: “As a lender, it is encouraging to see sustained confidence in the lending market since the beginning of the year at a time when the sector has seen a great deal of change.”

He added: “Whilst the full effects of the referendum result remain to be seen, it is clear those who have confidence in their business model and a sensible level of gearing are best placed to prosper through any period of uncertainty.”

However, there is less confidence over property prices in the coming months. In January 2016, 67% of property investors predicted a small increase in property values and 6% predicted a small decrease. The latest figures reveal that 42% are anticipating a small decrease in prices and only 21% are predicting a small increase over the next 12 months.

This mirrors findings from London Central Portfolio for new-build properties in inner London and the impact of oversupply on the market.

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