Landlords in the UK are still optimistic about investing in property despite Brexit uncertainty with two thirds positive about investment growth and yields, new research shows.
Some 64% are optimistic about the outlook for the residential buy to let sector over the next three years and of this, 13% are very optimistic, according to research commissioned by specialist property lender Cambridge & Counties Bank.
Indeed, the survey also suggests that a significant number of landlords are using the current market volatility to grow their portfolios with 19% looking to grow their portfolios by a third and 11% want to double it over the next three years. Just 19% of landlords are looking to sell.
However, despite the strong level of optimism, Brexit remains a key uncertainty for property sector professionals 40% of landlords conceding that it is top of their list of concerns. Brexit is seen as a bigger risk than rising interest rates, cited by 32%, a lack of confidence in the stability of lenders at 32%, and rising levels of tax also 32%.
While the buy to let sector is viewed most positively, a similar number of landlords, some 61%, are equally optimistic about student accommodation in terms of growth with 16% being very optimistic. Office buildings and properties are viewed positively by 41% of respondents, although almost a third are not optimistic.
In addition to growing their property portfolios, a significant number of landlords say they will be refurbishing their buy to let and investment properties, with an average of £10,000 set to be spent. Some 11% said they would spend more than £20,000, with 4% forecasting they would invest more than £50,000 in their property.
‘In spite of Brexit worries, it is great to see that the overall outlook for the commercial property sector is one of optimism,’ said Simon Lindley, chief commercial director of Cambridge & Counties Bank.
(c) Property Wire, June 2019