Some 80% of investors have no intention to change their UK property investment plans following the vote for Brexit, with market sentiment at its highest level since June.
- Some 80% of investors won’t change their plans to invest in UK property following the result of the EU referendum
- Many investors see opportunity in the political changes underway in the UK and are continuing to invest
- Homeowners are also confident in the market, with almost 20% believing the value of their property increased in October
Despite recent political changes, it’s business as usual for the UK property market.
According to a report by Simple Landlords Insurance, four out of five investors have no intention of changing their plans to invest in property, despite the result of the EU referendum, which prompted fears of a property slow down.
The majority of investors will not change their investment strategy in the wake of the government’s plans to cut tax relief on buy-to-let mortgage payments either. By 2020, investors will no longer be allowed to deduct the cost of their mortgage interest from their rental income when calculating rent, meaning tax is paid on turnover rather than profit.
Some 70% of those surveyed also said the reduction of tax relief on buy-to-let mortgage payments would not affect their plans, and 4% said they were planning to invest more as a result of the changes.
Jenny Mayes, Simple Landlords Insurance, said: “While some landlords are adopting a cautious ‘wait and see’ approach and slowing down their investment, others see opportunity in the changes and the vast majority want to keep or grow their property investment.
“With many, re-evaluating their objectives, changing their strategy, moving to limited company ownership or focusing on capital appreciation they are ultimately continuing to invest.”
This confidence was echoed in Knight Frank’s latest House Price Sentiment Index, where almost 20% of households surveyed believed the value of their home had risen in October.