29 Jun 2016

What does 'Brexit' mean for Scottish landlords?

What does 'Brexit' mean for Scottish landlords?

 

The UK’s decision to leave the European Union has upset the financial markets and created uncertainty in the British economy.

So what does it mean for Scotland's landlords and country's private rented sector?

For landlords, who have already been impacted by changes to the tax system including higher LBTT rates, cuts to mortgage tax relief, the removal of their wear & tear allowance, and tougher buy to let lending criteria, the leave vote could have been viewed as the proverbial cherry on the cake.

Don't panic

However, Adrian Sangster, National Leasing Director at Aberdein Considine, does not believe that the recent vote should add any additional burden to landlords.  

"It has certainly created a feeling of general uneasiness," he said.

"But in my 26 years working in Scotland’s lettings industry I’ve seen difficult and uncertain times before.

"From the UK leaving the ERM in 1992, the banking crisis and global recession in 2008 to the independence referendum in 2014, the Scottish private rented sector (PRS) has proved time and again to be resilient and able to adapt. 

"Ironically, it’s during these previous periods of uncertainly that I’ve seen lettings business increase as investors grow nervous of financial markets and turn to bricks and mortar as a less risky haven for their hard earned cash. 

"Also tenant enquiries tend to increase as people look to make short-term arrangements rather than commit themselves to a 20+ year mortgage etc.

"Therefore my message to landlords is, as Corporal Jones would say, don’t panic! 

"The steadying and reassuring words from the Governor of the Bank of England that they have extensive contingency plans in place coupled with the news this week that UK shares and pound continue to regain some of the ground lost should encourage landlords not to make any knee-jerk decisions.  

"Yes there is change and yes the outcome is still uncertain, however I am confident the PRS will do what it has done before and ride the storm to come out just as strong if not stronger on the other side."

Scotland's property experts

If you are looking to buy, sell or lease property, Aberdein Considine can offer you the support of some of the most experienced property professionals in the country.

Our leasing and property management team act for more than 2,000 landlords across Scotland.

We are also an independent broker of buy-to-let mortgages and can offer home loans without any hidden fees.

If you would like to speak to a member of our team, call 0333 0066 333 or click here

* Your home may be repossessed if you do not keep up repayments on your mortgage.


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