Brexit is not a good reason for delaying buy to let investment, insists a mortgage chief.
Andrew Turner is chief executive at specialist buy to let mortgage broker Commercial Trust, and says while it’s understandable the saga of leaving the EU is proving a deterrent, there are plenty of positive reasons to go ahead with an investment.
“Investment in bricks and mortar should always be viewed as a long-term investment strategy and in that context, Brexit can perhaps be regarded as a temporary blip” he insists, saying that the slowdown in house price growth caused by political and economic uncertainty means it’s a buyer’s market now - so buy to let purchases are at bargain level.
“Historically, house prices, over a long period of time, have proved immune to short-term economic events. Anyone looking to invest in buy to let for capital growth, should view their commitment as a long-term venture that will in likelihood, far outlive the short-term uncertainty surrounding Brexit” insists Turner.
In addition, he says, there is massive and highly competitive mortgage choice for investors.
“In late February 2019, Moneyfacts reported there were 2,162 different mortgage products available in the market place. That is the most in over a decade and underlines lender commitment to buy to let. It also means that competition is resulting in borrowers having a wider choice of rates and incentives when choosing a suitable buy to let mortgage product” he adds.
Meanwhile demand for rental property continues to soar, largely unaffected by Brexit.
“There is a long-term sustainable market of prospective tenants for anyone looking to invest in buy to let property. In February 2019, London estate agent Foxtons reported that throughout 2018, there was an increase in its number of renter registrations in the capital - up eight per cent on 2017” according to Turner.
And he concludes that whatever happens with Brexit “there is still going to be huge demand for buy to let landlords and rental stock for years to come.”