The landslide election victory by the Conservative party has met with positive reactions from figures in the buy to let property investment sector.
Founder and Managing Director of Sourced Capital, Stephen Moss, commented: ‘As the markets bounce around and then settle in the wake of the Conservative landslide, investor thoughts will be buoyed.
‘We’ve seen property stocks bounce up to 10 per cent this morning on the election news and this will cement a ‘property is safe as houses’ viewpoint which will stand the market in good stead going forward, both from an investment and residential point of view.’
Dilpreet Bhagrath, Mortgage Expert at online mortgage broker Trussle commented: ‘Political uncertainty has gripped the housing market for the past three years with many holding off buying and selling, and as a result, there’s been a recent fall in mortgage lending. The reassurance that comes with a five-year administration may encourage those prospective and current homeowners who had previously adopted a ‘wait and see’ approach. We’re hopeful that we’ll see activity in the housing market increase.’
Damien Siviter, Group Managing Director of SevenCapital, said: ‘Should Boris stay true to his plans for Brexit, the 3.5 years of being stuck in a limbo could finally have an outcome, which is a resounding wish amongst both business and the general public.
‘However, despite the uncertainty of the past few years, the UK has proven its ability to maintain its position as a top Global economic and financial centre and attractive, investable region. With Boris now able to move forward with his plans for Brexit, businesses should hopefully be able to begin to see some clarity over the next few years on how the UK will exit the EU, allowing those markets that have faltered to start to move again.’
However, some wanted to see further support for the buy to let sector following the Tory victory.
Bea Montoya, Chief Operating Officer at Simply Business, commented: ‘Buy to let landlords contribute a combined £16.1bn to the economy through pre-tax spending, and it’s vital that Boris Johnson and his party recognise their importance to Britain.
‘A lifetime deposit would bring about huge change, but with little detail published, it’s hard to see how this will work in practice, or the impact it could have on landlords.
‘We know a quarter of landlords already plan to cash in next year due to government reform, tax hikes, and uncertainty in the market. The current tax increases imposed by the government are proving counterproductive, but with no promises to prevent those looking to sell from leaving, we could see half a million homes put up for sale next year alone.’
Source: Residential Landlord