We’re in a buyers’ market for landlords willing to invest – Commercial Trust

Turner (pictured) believes that despite the political and economic uncertainty creating caution and a wait and see approach, this should be seen as a short-term blip which landlords can use to their advantage.

“Certainly, house prices and the housing market proved resilient in the face of the previous financial crisis, just over a decade ago,” he said.

“There is little reason to think the same will not be true with Brexit and five years from now, we might be looking at a very different landscape for borrowers.”

Smaller landlords selling

Turner noted that the slowdown in the housing market and price falls in certain locations made this an attractive time, and one which was not all the result of leaving the European Union.

“For those with money to invest, it could be argued that at present, we are in a buyers’ market, with opportunity knocking,” he said.

“That is partly down to Brexit uncertainty, but also some of the smaller landlords deciding to sell, rather than persevering with a buy to let industry which has become more regulated and in some cases, harder to turn a profit.”

This, he added, is particularly important when considering that house prices and capital growth should be treated as a long-term investment.

Growing tenant demand

Another encouraging situation highlighted for landlords is the availability of finance and the low rates being offered by lenders, with a growing spread of portfolio and limited company products.

When combined with increasing demand from tenants this further improves the situation for landlords.

“Certainly, available housing stock might have reduced on account of some landlords leaving the sector, because of tax and legislative changes,” Turner said.

“That has helped create a situation of soaring tenant demand for fewer properties and is perhaps impacting the market, helping to create the potential for rental growth and improved rental yields for landlords willing to stick at it.”

He concluded: “The UK’s housing crisis will not be resolved overnight and there is still going to be huge demand for buy-to -let landlords and rental stock for years to come.”