Brexit has been a perplexity this year, sending shockwaves across the world economy. Value of the Pound has dropped. And as Britain decides to exit the EU, this will definitely have an impact on the realty skirting, and most importantly, house prices.
Mortgage rates have hit a record low, urging overwhelming demands. Sales are soaring as house prices continue to fall. It’s kind of a hard reset the market is witnessing.
However, amidst all this sea change, the good news is, the rental market has been predicted to behave normal, as per the research by two third of the letting agents. As of now, we’ll concentrate on what’s happening in Bath, the Somerset County.
So, Who’s Driving The Stability?
To answer this question, we must look into the rental market of the county. It holds a lion’s share of non-UK residents, for whom, migration should have been a concern. This, in turn, should have impacted the bottom line of the letting market.
However, people are of the opinion that the immediacy would not have a mammoth impact. With this point of view, buy-to-let investors are heaping as well. There’s still every potential for the market to remain stable, whether it’s the Brexit situation or not.
Should Landlords Invest?
Well, Brexit has become more of a silver lining for landlords, especially the buy-to-let class. After the recent hit by the Chancellor’s tax alterations, this has come like a breather. As house prices continue to fall, mortgages are getting easier to obtain and landlords are in profit.
Would There Be A Supply Crisis?
As of now, nothing is known of immigration being restricted. But, if the number of people working in the construction sector is limited, this will definitely impact skill shortage and hence, supply crisis. Almost 12% of the population working in this sector belongs overseas.
The imbalance in supply-demand is far from getting resolved. Yes, the Government has targeted the construction of 200,000 houses annually. But, this has not yet materialised. Lack of supply could further influence house prices. This has no connection with Brexit, however.
How Brexit Could Affect The Price Of A Property To Let In Bath
In the wake of this huge political maelstrom, the predictions for prices of property to let in Bath have been varied. Here are some of the speculations:
• Overseas investments are likely to pour in, with investors trying to scoop up cheaper realty.
• There would be fewer houses available.
• Prices will remain stable, but tenancy could fall due to migration.
However, It Still Remains A Heap Of ‘Ifs And Buts’
Uncertainty is still looming. The rental market is apparently holding back investments, largely due to the unclear picture. All concerned people should remember that it is the UK Government along with local authorities that actually deal with the laws regarding the rental market. The EU is not in the picture. So, we can expect stability, despite Brexit. Let’s keep our fingers crossed.
The Apartment Company 