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Buy To Let Property Sector Reacts To Conservative Election Victory

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

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Brexit Deal Positive For UK Buy To Let Property Sector

The news yesterday from Boris Johnson that a new Brexit deal has been agreed should be a positive step for the UK buy to let property sector, taking away much of the uncertainty from the property market.

Leading figures from the property sector reacted positively to the Brexit deal news from the government.

Co-founder of ideal flatmate, Tom Gatzen, commented: ‘The news of a Brexit deal will bring relief to the many European renters currently residing across the UK. For many, the political purgatory caused by a protracted Brexit process has thrown doubt over their status to live and work in the UK and this has had a direct impact on their ability to rent, how long they can rent for and their commitment to enter into a lengthy tenancy agreement.

‘Although the devil will very much be in the detail of today’s deal, a light at the end of a very long, dark tunnel should go some way in stabilising this segment of the UK rental sector and we can now get back to living in happy, harmonious households.’

Founder and CEO of Springbok Properties, Shepherd Ncube, commented: ‘Hallelujah. Against the odds and in the face of doubters, a Brexit deal has now been done and the UK property market can emerge from its dormant state brought about by months of political uncertainty.

‘We don’t yet know the detail, of course, however regardless, the property sector will surely begin to breathe again on the basis of some level certainty being restored and this uplift in market activity should see the cogs of positive price growth and transactions start to climb once again.’

Director of London lettings and estate agent, Benham and Reeves, Marc von Grundherr, commented: ‘The political paralysis that the economy and in particular the housing market has endured these last few months has been torturous for would-be home sellers, buyers, estate agents, conveyancers and mortgage lenders alike.

‘London has certainly taken the brunt of this and while there are no doubt many details left to iron out, we can start to look forward and finally, beyond Brexit. This will bring about a notable change in the fortunes of weary London home sellers and the capital will now regain its title as the cornerstone of the UK property market.

‘Foreign investment has remained strong despite the current landscape, but this revival in domestic appetite will fill the tank and see the market shift through the gears, if not immediately, certainly as we see in a new year.’

Source: Residential Landlord